The markets have started the week continuing to recover from last weeks Monday decline. The S&P 500 (SPY ) finds itself about flat for the week, flirting with the 50 day moving average.
The Nasdaq 100 (QQQ ) has performed a little worse however as investors continue to price in the latest restrictions pending against Chinese phone manufacturer Huawei. Tech stocks have been held back which has held back the performance of the index.
Semiconductors (SMH ) sold off hard Monday but saw a recovery rally Tuesday partially on the news of easing restrictions on Huawei for now. Though China's largest phone maker was not happy with the decision it did help chip stocks recover from the recent price plunge. Technical traders will cited the support of the 200 day moving average along with the short term oversold condition of the sector.
Healthcare (XLV ) hinted at some relative strength on Monday and since then has shown more strength. Technical traders are looking at a clear downtrend line as the next resistance area to ty and break through to help the underperforming sector. For the year this is the worst performing sector in the S&P 500.
Home Builders (XHB ) enjoyed some strength on reports of new home construction beating estimates for last month along with higher sentiment from builders about the state of the industry. One negative was single family home permits which fell to a new 3 year low which is used as a forecast for future construction numbers.
All in all investors are continuing to focus on trade war escalations with China as there seems to be no deal in sight. President Trump has said he plans to meet with President Xi at next week's G20 meeting though many are confident it will not lead to a deal. Best case it helps to start the negotiations again.