Wall Street choppiness ends in last hour rally, DJIA + 0.3%
|- S&P 500 scored back-to-back records as stocks rallied in the last hour.
- DJIA, advanced 69 points, or 0.3%, to end around 26,787.
- The Nasdaq Composite also added gains on Tuesday, ending higher by 0.2% at 8,109.
Whilst the stock market started the day out on the backfoot, U.S. stocks actually ended in positive territory on Tuesday, despite global trade uncertainty weighing on international growth. The Dow Jones Industrial Average, DJIA, advanced 69 points, or 0.3%, to end around 26,787. However, more impressively, S&P 500 scored back-to-back records as stocks rallied in the last hour of trade. The Nasdaq Composite also added gains on Tuesday, ending higher by 0.2% at 8,109.
The mood was as fickle as ever on Tuesday, making for a choppy session across all asset classes. Stocks were leading the price action as investors tried to pin down the implications of President Donald Trump's threat to impose tariffs on European Union products, just as renewed hopes surfaced following the weekend's agreement between Xi and Trump to work towards a deal which subsequently postponed the imposition of tariffs on another $300 billion of imports. However, on the day, White House economic adviser Peter Navarro said to CNBC that U.S.-China negotiations would "take time." As for corporate action, the shares of Amarin Corp. AMRN, stood ut the most which climbed 17% after the pharmaceutical raised its outlook.
DJIA levels
As per the charts, at the start of the week, the DJIA moved out of the consolidation phase where it had been previously glued to the pivot following a drift down away from the 3rd Oct 2018 highs. 26907 were the June highs. From here, the momentum indicators are aligned positively as price rises away from the 20 4-hour moving average and can target all time highs. However, on the flip side, a break to the downside opens risk towards 26500, the prior sideways consolidation level above the 61.8% Fibo retracement level of April to June swing highs and lows. On the upside, bulls can target a break to said Oct 2018 highs.
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