The major US stock indices are trading higher. The NASDAQ index is leading the way and making new session highs. The index is currently up 224 points or 1.07% at 21140.07.
Looking at the hourly chart, last Friday’s sharp decline pushed the price below its 200-hour moving average (Green line in the chart above) for the first time since April 24. The drop also took the price under the 38.2% retracement of the rally from the June 23 low to the July 31 high at 20,650.10.
However, on Monday, the market gapped higher, and today’s trading has seen the price extend back above both the 100-hour moving average at 21,020.24 and the 50-hour moving average at 21,043.28. Holding above these levels is technically bullish. A sustained move back below them would be needed to undermine the current bullish bias.
Key technical levels:
200-hour MA: April 24 breach level (bearish signal when broken).
38.2% retracement: 20,650.10 (support).
100-hour MA: 21,020.24 (support/resistance).
50-hour MA: 21,043.28 (support/resistance).
Apple is leading the way after it made another $100 billion investment commitment in the US boosting its total to $600 billion. At 4:30 PM, Pres. Trump and Apple CEO Tim Cook will make the announcement in the Oval Office.
What is part of the deal is that Apple products will be exempt from India tariffs. Those tariffs were raised to 50% today as a result of the country's purchase of Russian oil. Shares are currently trading up 5.76%.
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