Bears Get Another Weekly Win

U.S. markets closed slightly higher on Friday while holding positive territory throughout much of session despite disappointing factory data. The S&P 500 showed some mild weakness after the open and was the only index that dipped into negative territory before returning to strength.

President Trump bolstered market sentiment after he said certain restrictions against Chinese tech companies could be addressed in a trade deal but it wasn’t enough to avoid another negative week. The good news is the major indexes held the late March lows for the second time this month while volatility eased into the holiday weekend.

The Russell 2000 rose 0.9% after testing a morning peak of 1,516. Near-term and lower resistance at 1,510-1,525 was cleared and held with a close above 1,530 being a more bullish signal for a near-term bottom.

The Dow added 0.4% following the run to 25,670 shortly after the opening bell. Prior and lower resistance at 25,500-25,750 was cleared and held with more important hurdles at 26,000 and the 50-day moving average.

The S&P 500 climbed 0.1% after tapping a first half high of 2,841. Current and lower resistance at 2,850 held with a close back above 2,875 and the 50-day moving average signaling additional strength.

The Nasdaq also edged up 0.1% following the morning run to 7,694. Prior and lower resistance at 7,700-7,750 was challenged but held with a close above 7,850-7,900 and the 50-day moving average leading to additional momentum.

The Nasdaq was down for the 3rd-straight week after flopping 2.3% and the Russell 2000 fell 1.4%. The S&P 500 extended its losing streak to 3-straight weeks as well after giving back 1.2% while the Dow was down 0.7%, its 5th-straight down week.

Financials were the strongest sector after rallying 0.8% while Materials gained 0.6%. Consumer Staples paced sector laggards with a decline of 0.4% while Utilities slipped 0.2%.

The best performing sectors for the week were Utilities (1.8%), Healthcare (1.3%) and Real Estate (0.3%). Energy (-3.3%) was the worst performing sector followed by Technology (-2.8%) and Consumer Discretionary and Communication Services (-2.1%).

 

  I hope this helps you prepare for the trading day. Make it a great one!

   Todd Mitchell