The market continued its recovery efforts from last Friday’s selloff after showing strength for the 2nd-straight session, while recovering key levels of prior support. The results of the Iowa Democratic Caucus and the late release may have helped sentiment as President Trump’s reelection efforts appeared to get stronger. The suit-and-ties blamed problems with a mobile app being used for the event as the cause for the delay.
Notably sitting out the rally was Alphabet (GOOGL), as the parent company of Google fell 2.5% after its earnings announcement.
Tesla (TSLA) shares continued their parabolic run, adding another 13.7%, after one of its longer-term investors said the company should reach $1 trillion in sales within 10 years while becoming one of the largest companies in the world. With an RSI in the 90’s, shares have become extremely overbought but the ride has been breathtaking to say the least.
The Nasdaq traded to a fresh record high of 9,485 while closing at 9,467. New resistance is now at 9,500 with a close above this level signaling an additional upside toward the 9,650 area.
The Dow tested a 2nd-half peak of 28,904 while closing at 28,300. Key resistance at the 29,000 level was challenged but held with potential toward 29,500 and fresh all-time peaks, if cleared and held.
The S&P 500 soared to an intraday high of 3,306 while closing at 3,297. Near-term and key resistance at 3,300 was cleared but held with continued closes back above this level, getting 3,325-3,350 and lifetime highs back in focus.
The Russell 2000 rallied to a high of 1,661 while going out at just south of 1,657. Key and prior support at 1,650 was cleared and held with the next hurdle at 1,675.