U.S. markets opened slightly lower but showed strength shortly afterwards while maintaining positive territory for much of the session.
President Trump's remarks about a potential "great deal" with China helped sentiment and follows news that the U.S. could levy tariffs on the balance of Chinese imports.
Tech showed some midday weakness as it slightly lagged overall market strength with a number of major companies set to report 3Q earnings this week.
Volatility stayed slightly deflated after holding near-term resistance for a 4th-straight session.
The Russell 2000 showed the most strength after rocketing 2% and making a run to 1,507.
Near-term and lower resistance at 1,500-1.515 was cleared with a close above 1,520 being a more bullish development.
The Dow was up 1.8% after testing an intraday high of 24,906.
Near-term resistance at 24,800-25,000 was split with continued closes back above 25,150 and the 200-day moving average being a more bullish signal.
The S&P 500 surged 1.6% while trading to a session high of 2,685.
Fresh and lower resistance at 2,675-2,700 was cleared and held with continued closes above the latter being a slightly bullish development.
The Nasdaq advanced 1.6% while trading to a midday peak of 7,166. Lower resistance at 7,150-7,200 was held by the bulls with continued closes above 7,300 signaling a possible near-term bottom.
Communications was the strongest sector after zooming 2.7% while Energy and Materials were up 2.3%. Industrials and Consumer Staples were higher by 2.1% and 2%, respectively.
There were no sector laggards.
Global Economy - European markets were mixed with slight gains and losses following disappointing economic data.
UK's FTSE 100 climbed 0.1% and the Stoxx 600 Europe was up fractionally, or 0.01%.
Germany's DAX 30 was lower by 0.4% and the Belgium20 declined 0.3%. France's CAC 40 slipped 0.2%.
Eurozone Q3 GDP was up 0.2% quarter-over-quarter and 1.7% year-over-year, missing forecasts for a gain of 0.4% and 1.8%.
Eurozone October economic confidence fell 1.1 to a 17-month low of 109.8, below estimates of 110. The October business climate indicator declined 0.2 to 1.01, weaker than expectations of 1.16.
German October unemployment fell 11,000 to 2,292,000, slightly less than expectations for a decline of 12,000. The October unemployment rate remained unchanged, as expected, at 5.1%.
Asian markets settled mostly higher after the China Securities Regulatory Commission said it will increase stock market liquidity and encourage long-term funds to invest in shares.
Japan's Nikkei jumped 1.5% and Australia's S&P/ASX 200 gained 1.3%.
China's Shanghai soared 1% and South Korea's Kospi rallied 0.9%. Hong Kong's Hang Seng was down 0.9%.
The Japan September jobless rate slipped 0.1 to 2.3%, topping expectations for no change at 2.4%.
The September job-to-applicant ratio rose 0.1 to 1.64, stronger than estimates of no change at 1.63.
Redbook Store Sales up 5.9% for the year in the week ending October 27th.
S&P Corelogic Case-Shiller dipped 0.02% to 213.72 in the 20-City August survey, missing forecasts of 214.7. The 10-City index edged up 0.01% to 227.17.
All 20-cities posted annual gains, led by Las Vegas (13.87%) and San Francisco (10.57%), with Washington DC and New York bringing up the rear with gains of 2.82%.
October Consumer Confidence checked in at 137.9, topping forecasts of 136.3, but down from an 18-year high of 138.4 in September.
The present situation component improved to 172.8 from 169.4 while the expectations index climbed to 114.6 from 112.5.
The labor differential increased to 32.7 from 30. The 12-month inflation gauge ticked up to a 4.8% pace versus 4.7% in August and September.
September Farm Prices were down 4.6% for the month of September.
Market Sentiment - The iShares 20+ Year Treasury Bond ETF (TLT) was weak throughout the session following the backtest to $114.02.
Upper support at $114.25-$113.75 failed to hold with a move below $113.50 being a slightly bearish signal.
Lowered Resistance is at $114.75-$115.25.
Market Analysis - The Spiders Dow Jones Industrial Average ETF (DIA) was up for the 2nd time in 4 sessions after making a midday run to $248.94.
Fresh resistance at $249.50-$250 and the 200-day moving average held with the latter showing signs of rolling over. T
he 50-day moving average is also in a slight downtrend.
Near-term and shaky support is at $245-$244.50. Another move below $243.50 could lead to a continued pullback towards $242.50-$240.
RSI is back in a slight uptrend after holding 3-year and lower support at 30. Resistance is at 45 with a move above this level signaling additional strength.
The Financial Select Sector Spiders (XLF) showed strength for a 2nd-straight session after making a push to $25.94. Fresh and upper resistance at $25.75-$26 held with continued closes back above $26.25 being a more bullish development.
This area represented late June and early July support.
Current support is at $25.25-$25 with the latter representing September 2017 resistance. Last Friday's low tapped $25.02 with a close below $25 likely leading towards a further pullback to $24-$23.50.
The 50-day moving average recently fell below the 200-day moving average to form a death cross.
This is typically a bearish technical pattern that can lead to lower lows.
RSI is in a slight uptrend with resistance at 45-50. A move above the latter would signal additional strength and would be a slightly bullish development.
Support is at 35-30.
Existing Position Update
Will roll over ROKU if no upside tomorrow.
Initiated AMZN iron condor - believe stocks will congest for a bit with high volatility.
Feel comfortable with remaining positions because there's sufficient time value left and markets are oversold in the short term.
Roger Scott