U.S. markets began Wednesday’s session in a holding pattern with trading ranges extremely narrow. A late day push into positive territory was enough for record closing highs on the Dow, S&P 500 and the Nasdaq.
The Dow still needs to clear 22,179 to set an intraday record high while the Russell 2000 remains just under 2% before it sets another all-time high. Energy led the sectors in the green while Utilities were the weakest link.
Global Economy – European markets were mixed following a lackluster session with traders taking a break following a positive five-session run. The DAX 30 and France’s CAC 40 index added 0.2% while the Stoxx Europe 600 slipped a tenth-point, or 0.02%. The FTSE 100 dropped 0.3% and the Belgium20 gave back 0.2% while
Asian markets were also mixed with Japan’s Nikkei gaining 0.5% to close a five-week high. China’s Shanghai index climbed 0.2% while Australia’s S&P/ASX 200 was unchanged. Hong Kong’s Hang Seng Index declined 0.3% and South Korea’s Kospi fell 0.2%.
Asian markets were also mixed with Japan’s Nikkei gaining 0.5% to close a five-week high. China’s Shanghai index climbed 0.2% while Australia’s S&P/ASX 200 was unchanged. Hong Kong’s Hang Seng Index declined 0.3% and South Korea’s Kospi fell 0.2%.
Japan’s PPI grew 2.9% year-over-year in August, representing its highest growth level since 2008.
The producer-price index rose 0.2% in August with the core rate up 0.1%, both of which were a tad below expectations.
MBA Mortgage Applications Composite Index was up 9.9% for the week ending 9/8.
Market Sentiment – The iShares 20+ Year Treasury Bond ETF (TLT) pulled back for the 4th-straight session after trading down to $126.28. Lowered support at $126.25-$126 held with continued risk to $125.25-$125 and the 50-day moving average on a move below the latter.
Resistance is at $127-$127.25.
Market Analysis- The PowerShares QQQ (QQQ) traded to an all-time high of $146.44 with fresh resistance at $147.50-$148. Continued momentum could get $150 in play on a close above the latter. A new base of support is trying to form at $145.50-$145 with backup help at the $144 level.
The 50-day moving average is showing renewed strength and remains in a strong uptrend. RSI is just above the 60 level and could reach 70 on a continued rally.
The iShares PHLX Semiconductor (SOXX) is trying to clear resistance at $152 and a level that has been holding since late July. This area also held at the beginning of the month with continued closes above $152.25-$152.50 likely leading to a run towards $154-$155.
Support is at $151.75-$151.50.
All the best,
Roger Scott