Today’s Spotlight Market
The stock market got a boost yesterday from tech stocks, with several notable players making notable gains.? Amazon made a new record high, climbing above its August 1 record close.? The massive online retailer has been on a tear since April, rising over 28% over this period.? Blue chip Microsoft also posted a new record high, albeit in less spectacular fashion, after breaking out of a consolidation pattern on the daily chart. Alphabet also broke out of a consolidation pattern on the daily chart, while Facebook and Apple held strong.
Fundamentals
Last week?s strong showing on the labor front is good news on the consumer spending front, as more jobs can lead to more discretionary income.? Stronger job creation, however, may also sway the Fed to raise rates sooner rather than later.? Economists are putting the chances of a US and global recession much lower now, and central banks have been extremely accommodating.?? Some traders believe the worst may be behind us economically and the worst may also be behind us on the earnings front.?? Some traders are expecting the corporate earnings recession to end soon.? Earnings were down sharply in Q1, but improved in Q2, and this trend is expected to continue.? Improving employment and overall economic conditions could be especially impactful for technology stocks, which have been rather lackluster.? Even big name, like Apple have failed to inspire with recent earnings, and an economic recovery could be just what the doctor ordered.
Technical Notes? -? View Today’s Chart
Turning to the chart, we see the September E-mini Nasdaq futures trading making new highs.? Since the index is now in uncharted territory, one can only speculate where the market may encounter resistance.? The market may find resistance around the 4850.00.? One the downside, recent resistance around the 4715.00 level could be interpreted as support.? The RSI remains overbought , which could slow prices a bit.? It is interesting to note that the RSI and momentum indicators have been moving sideways to lower, while prices have continued to climb.? This could mean that prices could be in store for some consolidation or possibly a reversal in the near-term.
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