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U.S. markets ended mixed following the abandonment of the Affordable Care Act healthcare reform. Two more Republicans defected Monday night, leading President Trump to confirm that he always backed allowing Obamacare to fail before replacing it.

Earnings from the Financial companies topped expectations but pulled back as the sector finished lower. Tech set an all-time high to keep the overall market losses in check.

Global Economy –European markets traded lower as the euro hit a 14-month high against the U.S. dollar along with disappointing corporate earnings from across the pond. A stronger euro can hurt European exporters as it makes products more expensive for overseas customers.

The DAX 30 index lost 1.3% in its worst session since June 29th while the Stoxx Europe 600 gave back 1.1% with all sectors closing in the red.

Asia markets were broadly weaker, with Chinese stocks stabilizing following Monday’s pullback.

The Shanghai Composite gained 0.3% while the Shenzhen Composite was up 0.6%. Japan’s Nikkei Stock Index fell 0.6% to a one-week low while settling below the psychologically-important 20,000 level.

China June new home prices rose in 60 of 70 cities tracked by the government, up from 56 cities that rose in May.

The U.K. inflation eased unexpectedly in June, after its Consumer Prices Index came in at 2.6%, compared with an expected reading of 2.8%.

German economic sentiment expectations fell to 17.5 points from 18.6 points in June, which is below the indicator’s long-term average of 23.8 points. Economists had forecast a decline to 17 points.

U.S. Economy-Redbook Store Sales were up 2.2% for the year for the week ending 7/14.

The NAHB housing market index fell from 66 to a reading of 64 in July, an eight-month low.

The Republican health care bill has been shelved as Republican leaders have given up on their effort to replace Obamacare – for now.

With only a narrow margin for the bill to pass, Republicans could only afford to lose two Republican votes, spots which were already accounted for by Rand Paul of Kentucky and Susan Collins of Maine. Yesterday, two more Senators, Mike Lee and Jerry Moran, came out in opposition of the bill.

Market Sentiment –The iShares 20+ Year Treasury Bond ETF (TLT) made a strong move to clear its 50-day moving average after trading to a high of $124.77. Fresh resistance is at $125-$125.25. Rising support is at $124-$123.75.


Market Analysis-The Nasdaq traded to an all-time high north of 6,343 after closing higher for the 8th-straight session. Current momentum could carry the index towards 6,450-6,500 on continued closes above the 6,350 level.

Near-term support is at 6,300-6,250 with a move below the latter a slightly bearish development.


The PowerShares QQQ ETF (QQQ) cleared the $143 level after testing a high of $143.20. The current all-time high is at $143.90 with resistance at $144-$145. Continued closes above the latter could get $147-$147.50 in the mix.

Support is at $142.50-$142 with a close below the latter likely leading to $140-$139.50 and a backtest to the 50-day moving average.


The Utilities Select Sector Spider (XLU) has been rebounding off its recent lows after holding support at $52-$51.75 and the 100-day moving average. Resistance is at $52.50 with continued closes above this level a bullish signal.



All the best,
Roger Scott