The stock market extended its winning streak to three-straight sessions after closing higher on Friday following a slight breakthrough in stimulus talks. President Trump upped his counter offer to $1.8 billion but Senate Majority Leader Mitch McConnell said a coronavirus stimulus package will not likely happen before the election.
Despite the ongoing uncertainty, the major indexes closed out a solid week while pushing prior and multi-month resistance levels. The higher Friday close was also a slightly bullish signal, but more importantly, the lowered volatility heading into the start of the 3Q earnings season was also a bonus for the bulls.
The Nasdaq tapped a late day high of 11,581 while closing at 11,579 (+1.4%). Prior and lower resistance from early September at 11,500-11,600 was cleared and held. A close above the latter would indicate further upside towards 11,700-11,800.
The S&P 500 finished at 3,477 (+0.9%) with intraday high hitting 3,482. Laye August and lower resistance at 3,475-3,500 was reclaimed. A move above the latter would suggest a retest towards 3,450-3,475 and levels from early September.
The Russell 2000 tested a morning peak of 1,645 before settling at 1,637 (+0.6%). Longer-term and lower resistance from February at 1,635-1,650 was recovered. A close above the latter would signal another run towards 1,660-1,675. Below is a chart of the IWM.
The Dow tagged an first half high of 28,676 while going out at 28,586 (+0.6%). Prior and lower resistance from early September at 28,500-28,750 was cleared and held. A move above the latter would be an ongoing bullish development with additional strength towards 29,000-29,250 and prior peaks from early September.
These unique ‘Income Trades’ have limited risk and they typically play out in a few days.
Perfect for boosting your weekly income and building your retirement account.
EyePoint (EYPT) upgraded to Buy from Neutral at H.C. Wainwright
International Paper (IP) upgraded to Overweight from Equal Weight at Wells Fargo
Medtronic (MDT) upgraded to Outperform from Market Perform at Bernstein
American Express (AXP) downgraded to Neutral from Positive at Susquehanna
Amgen (AMGN) downgraded to Hold from Buy at Truist
Nvidia (NVDA) downgraded to Sell from Reduce at New Street
MONDAY'S EARNINGS ANNOUNCEMENTS
Before the open: None
After the close: None (Note: 3Q earnings starts Tuesday)
MONDAY'S ECONOMIC NEWS
No major announcements
Gold closed at $1,926.20 an ounce,