US stock markets rally after Chinese calming words

Dow Jones 30

The Dow Jones 30 rallied a bit during the day on Tuesday, gaining over 1% as Chinese officials overnight were a bit more measured in their words, suggesting that they had no interest in escalating the talk of a trade war between the 2 countries. With this in mind, I think we are going to continue to try to rally from here and go much higher, perhaps reaching towards the 25,000 level. If we break above that level, we can go much higher, but obviously this market is going to continue to see a lot of volatility due to headlines coming out of both countries. I believe that the 24,000-level underneath is massive support.

NASDAQ 100

The NASDAQ 100 rallied a bit during the trading session on Wednesday, breaking above the 6500 level and consolidating just below the 6600 level. That’s an area that will continue to be minor resistance, but I think we will break above there and then go looking towards the 6700 level after that. A break above 6700 sends this market towards the 7000 level over the longer term. This market will be just like all the others, moving with the attitude and the words coming out of both the United States and China when it comes to a potential trade war. The less likely the trade war, the higher the market goes. This makes a lot of sense as technology was one of the areas that was about to be ripped apart by government officials.

Dow Jones 30 and NASDAQ Index Video 11.04.18