U.S. markets opened slightly higher as there was little reaction to the contentious G-7 meeting over the weekend despite President Trump leaving early while highlighting the divisiveness over the trade disputes among the allies.

Trading was choppy afterwards with a slight pullback as Wall Street turned its focus towards the upcoming U.S.-North Korea summit. However, upside momentum resumed after the White House said negotiations are ahead of schedule, which may bode well for a plan to de-nuclearize the Korean peninsula.

The Nasdaq was up 0.2% after reaching a midday peak of 7,677 while coming within 20 points of a fresh all-time high.

The Russell 2000 added 0.1% following the morning run to 1,677 while missing another record high by just over 2 points.

The S&P 500 gained 0.1% after testing a high of 2,790 with major resistance at 2,800 holding.

The Dow was up for the 6th-time in 7 sessions after rising nearly 6 points, or 0.02% while tapping 25,402 intraday.

Consumer Staples and Energy showed the most sector strength with gains of 0.8% and 0.5%, respectively.

Utilities were weak after slipping 0.3% while Financials dipped 0.2%. Real Estate was the only other sector laggard, slipping 0.03%.

Global Economy – European markets were higher with Italy’s market posting its best session in more than a year after the country’s new finance minister offered reassuring comments about the eurozone.

The Belgium20 jumped 1.2% while UK’s FTSE 100 and the Stoxx 600 Europe were up 0.7%. Germany’s DAX 30 rallied 0.6% and France’s CAC 40 advanced 0.4%

UK April industrial production unexpectedly fell 0.8%, weaker than expectations for a rise of 0.1%.

UK April manufacturing production declined 1.4%, well below forecasts for a gain of 0.3%.

Asian markets were mixed ahead of the U.S.-North Korea summit with better-than-expected economic news our of China and Japan.

South Korea’s Kospi soared 0.8% and Japan’s Nikkei rose 0.5%.

Hong Kong’s Hang Seng climbed 0.3%. China’s Shanghai fell 0.5% and Australia’s S&P/ASX 200 slipped 0.2%.

China May CPI rose 1.8% year-over-year, matching forecasts. May PPI rose 4.1%, stronger than expectations of 3.9%.

Japan April core machine orders surged 10.1%, stronger than forecasts for a rise of 2.4% and the largest increase in over two years.

There was no major U.S. economic news today.

Market Sentiment – The iShares 20+ Year Treasury Bond ETF (TLT) traded lower for the 2nd-straight session following the backtest to $118.94.

Upper support at $119-$118.50 and the 50-day moving average was breached but held into the closing bell. Lowered resistance remains at $119.75-$120.25.

Market Analysis – The Russell 2000 ETF (IWM) tested a high of $167.11 with near-term resistance at $167-$167.25 holding.

Last week’s all-time high reached $167.23 with continued closes above $167.25 leading towards a possible run at $169-$170.

Current support is at $166.25-$166 with a move below $164 signaling a short-term top.

RSI is trying to hold support at 70 with continued closes above this level signaling additional strength and a push towards 75-80 and June/ January highs. S

upport is at 65-60 with a move below the latter signaling additional weakness.

The Spider Gold Shares (GLD) have been in a mini trading range between $122-$123.75 since mid-May with today’s high reaching $123.42. Continued closes above the latter would be a slightly bullish development with fresh resistance at $124 and the 200-day moving average.

The 50-day moving average has been in a downtrend since late April and is showing signs of falling below the 200-day moving average.

This would form a death cross and is typically a bearish technical setup for lower lows.

Current support is at $122.75-$122.50. A close below $122 would signal additional weakness towards the $121-$120 area.

RSI is in a slight uptrend with mid-May resistance at 50. Continued closes above this level would be a slightly bullish signal. Support is at 45-40.

All the best,
Roger Scott