For the moment, the stock market continues to defy the notion that inflation or slower economic growth is hurting US businesses. Corporate earnings have slightly underperformed, but the stock market has continued on a trajectory upwards since the middle of July.
Technology (XLK) was today’s best performing sector, logging 2.66% daily gains, and is one of the best sectors driving this market. With technology leading the way, it is no surprise that the NASDAQ is leading the way for all three indices.
The NASDAQ 100 is the only index decidedly through resistance, yet still faces more overhead resistance and needs to continue trending higher in the coming days to keep the uptrend intact.
Click here to read more about attractive ETF sectors and actionable trading levels.
All major U.S indices advanced, as the first week of August trading is well underway. However, investors question if the current uptrend can continue after a spectacular month of returns in July.
U.S. Indexes have managed to keep the rally that began earlier this summer going in August, with more higher highs and higher lows. As I wrote yesterday, investing in an inflationary environment can be challenging. The markets have been volatile, but stocks have trended steadily higher, with corporate earnings performing well.
As my subscribers know, I am investing and holding precious metals, but I also have a few positions in growing companies, especially in disruptive technology like the ETF ARKK.
Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth and a special bonus here.
Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.
Mish in the Media
Mish explains what to expect following huge post-earnings moves, plus goes over the Fed, inflation and some picks, on Making Money with Charles Payne.
In this appearance on Business First AM’s Trader Talks, Mish explains why Clover Health (CLOV) can rally.
Read Mish’s latest article for CMC Markets, titled “A Trendsetting Week in the Markets (Part 2 of 2)“.
In this appearance on Bloomberg TV, Mish goes through the quagmire of yields–too soft or too high–during stagflation, plus investments to watch.
In this appearance on Business First AM, Mish explains why certain intermarket relationships matter right now.
Mish talks big tech earnings and how long we can expect growth to outperform on Cheddar TV.
ETF Summary
S&P 500 (SPY): 416.75 now closest resistance point with first level of support of 411.07.Russell 2000 (IWM): 190.72 the first resistance point with close support at 188.20.Dow (DIA): 329.82 resistance and support at 325.82.Nasdaq (QQQ): 325.75 1st level of resistance and support at 318.01.KRE (Regional Banks): 64.21 key resistance, support level at 63.17.SMH (Semiconductors): 245.45 now pivotal support 237.50.IYT (Transportation): 237.00 key resistance and support at 234.12.IBB (Biotechnology): 128.85 resistance point and 125.66 is support.XRT (Retail): 67 first resistance point and now support is 65.2.
Mish Schneider
MarketGauge.com
Director of Trading Research and Education