Bears Push Near-Term Support

U.S. markets showed weakness for a 2nd-straight session while closing slightly lower in anticipation of what the Fed may or may not do ahead of next week’s FOMC update. The pullback held near-term support levels with the possibility of a mini-trade range developing into the announcement on interest rates.

The Nasdaq was down 0.4% after testing a morning low of 7,773 and failing to clear its 50-day moving average for the 3rd-straight session. Near-term and upper support at 7,750-7,700 easily held with a close below the latter opening up risk towards 7,650-7,600.

The Dow was lower by 0.2%, after trading to an intraday low of 25,958. Near-term and upper support at 26,000-25,750 and the 50-day moving average was breached but held with a close below the latter being a bearish development.

The S&P 500 also slipped 0.2% following the intraday pullback to 2,874. Fresh and upper support at 2,875-2,850 was breached but held with the index holding its 50-day moving average for the 4th-straight session.

The Russell 2000 bucked the trend after edging up less than a point, or 0.05%, while testing a 2nd-half high of 1,522. Upper support at 1,515-1,500 was breached but held following the opening pullback to 1,512.

Utilities led sector strength after jumping 1.3%. Healthcare and Real Estate were higher by 0.5% and 0.4%.

Energy and Financials were the weakest sectors after dropping 1.4% and 1%, respectively.

 

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

   Todd Mitchell