Wallstreet bulls keep the momentum going as US and China are ready to negotiate over tariffs

• The US and China are willing to negotiate over trade tariffs.
• The main US indices are up for the third day in a row.

The three main indices continued their run higher on Thursday after the markets sharply rebounded on Wednesday as the market participants are dialing back their concerns about the trade war escalation between the US and China. The two nations will enter a period of negotiation which is said to last six months in order to find solutions to the trade tariffs issue. Equally lifting investors’ mood are  talks of some analysts who argue that the US could weather a protracted trade war.

The S&P 500 is up 0.93%, with the energy sector gaining 1.8% as crude oil prices are supported.  The Dow Jones Industrial Average is up 0.90% an is currently up  for three days in-a-row. The Nasdaq is up 0.55% as chipmakers stocks were lagging behind. Gold is trading lower below $1,330 while the US Dollar is pushing higher trading at $90.50. Safe-haven yen sold off across the board.   

S&P 500 Index 4-hour chart

The bulls are testing the immediate resistance at 2,679.25 swing high and the 100-period simple moving average in the 4-hour chart. The next resistance at sight is the 2,700 figure, supply level and home of the 200-period simple moving average. While immediate support is seen at the 2,500 figure and at 2,620.25 previous swing high. 

Dow Jones 4-hour chart

The Dow Jones is nearing the 200-period simple moving average in the 4-hour chart as the bulls have broken above the 24,500 supply level. The next key resistance is seen at the 25,000 psychological level and 25,508 swing high. To the downside support is seen at 24,422 swing low, followed by 24,046 swing high. 

Nasdaq 4-hour chart

The tech-heavy Nasdaq rebounded from the 6,300 support found a day earlier. Immediate support is seen at the 6,647.5 current swing low and close to the 50-period simple moving average, followed by 6,488 swing high. Resistances ahead are seen at  6,706 previous swing high and at  6,834 swing high.