Wall Street closes in the green again and S&P 500 enters longest winning streak since September 14th
- The Dow Jones Industrial Average rose 91.67 points, or 0.4%, to 23,879.12, its best series of gains since November 8th.
- The S&P 500 climbed 10.55 points, or 0.4%, to 2,584.96.
- The Nasdaq Composite Index advanced 60.08 points, or 0.9%, to 6,957.08.
Wall Street made further gains on Wednesday, closing higher for a fourth session. The S&P 500 is now in its longest winning streak since September 14th while investors cheer the apparent progress that appears to be forged in talks between officials from both Beijing and Washington as the two nations aim to find a solution to their trade dispute.
At the same time, the cautious tones of Fed speakers since the December meeting accompanied by the FOMC minutes of the December 18-19 meeting is a relief to corporations, igniting the prospects of the reflation trade returning and helping to buoy sentiment.
However, there were reports that President Trump slammed his hand on a table and stormed out of a White House meeting with congressional leaders on Wednesday after Speaker Nancy Pelosi of California said she would not fund a wall along the southern border, "dramatically escalating the confrontation over the government shutdown," the New York Times reported. CNBC reported that Trump called the meeting "a total waste of time." "I said bye-bye, nothing else works!" Trump said in a tweet after the walkout. The breakdown in negotiations over border wall funding appeared to heighten the possibility that Trump might declare a national emergency which markets are likely to respond negatively to as a partial government shutdown is set to enter the 19th day, on the verge of becoming the longest government shutdown on record, if it isn’t resolved by Saturday.
- Support levels: 23619 23420 23295
- Resistance levels: 23942 24067 24265
Technically, bulls keep locked on the 50% retracement Fibo of Dec's decline at 23765, moving on through to take on the last swing low printed on the 9th Dec which meets R2 at 24067. Both daily MACD and RSI are drifting higher. However, the index has printed a bearish closing shadow at this juncture that should be a warning to the bulls.