US Market Rallies on Positive Trump Tax Cut News

US Market Rallies on Positive Trump Tax Cut News

US Market Rallies on Positive Trump Tax Cut News

$DIA, $SPY, $QQQ, $VXX

US stocks finished up Tuesday, with the 3 major indexes posting their best 1-day gainers in over a week, as lawmakers’ comments on tax reform and the debt ceiling boosted investor optimism.

Wall Street rallied Tuesday as participants “bought the dip” that the major indexes saw in the last few weeks.

As they moved stocks hit some resistance at the S&P 500’s 50-Day SMA (2,450.29), and then overcame the Key technical mark in the late afternoon action

The Nasdaq (+1.4%) led the advance, followed by the S&P 500 (+1.0%), and then the DJIA (+0.9%).

Tax reform came back into focus Tuesday following a report that President Trump’s tax reform Team has made significant progress on a tax-reform proposal.

Wall Street traders saw it as positive, as they have been looking for some sense of progress on tax reform for some time.

The extension of the Trump Rally was broad-based Tuesday with 6 sectors, financials, consumer discretionary, industrials, materials, technology, and healthcare finishing with gainers of at least 1.0%.

Erasing most of the losses seen so far this month of August.

The top-weighted tech sector (+1.5%) led the charge, breaking a 3-session losing streak. Within the tech group, chipmakers showed notable strength, sending the PHLX Semiconductor Index higher by 1.6%.

Tuesday, the major US stock market indexes finished at: DJIA +196.14 at 21899.89, NAS Comp +84.35 at 6297.46, S&P 500 +24.14 at 2452.47

Volume: Trade was lite as just 688-M/shares were exchanged on the NYSE

  • NAS Comp +17.0% YTD
  • DJIA +10.8% YTD
  • S&P 500 +9.5% YTD
  • Russell 2000 +1.0% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.43) Bullish (0.32) Very Bullish (0.52) Bullish (0.46)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (0.18) Neutral (0.24) Bullish (0.33) Neutral (-0.04)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.46) Neutral (0.08) Very Bullish (0.67) Very Bullish (0.62)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.26) Neutral (-0.06) Bearish (-0.35) Bearish (-0.38)

Stay tuned…

 

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