Bears Stay Aggressive

U.S. markets trended lower for a 2nd-straight session as Wall Street awaits Wednesday’s FOMC minutes and Friday’s official start to the 1Q earnings season. The major indexes held near-term support levels holding but closed at sessions low with volatility closing above a key level of support.

The Russell 2000 sank 1.3% following the pullback to 1,558. Lower support at 1,575-1,560 and the 200-day moving average failed to hold to open up risk towards 1,550-1,535 and the 50-day moving average.

The Dow fell 0.7% after trading down to 26,103 ahead of the closing bell. Lower support at 26,250-26,000 held with a move below this level opening up risk towards 25,750 and the 50-day moving average.

The S&P 500 closed lower for the 1st time in 9 sessions after giving back 0.6% while tapping a morning low 2,873. Current and upper support at 2,875-2,850 held with backup help at 2,825-2,800 and the 50-day moving average.

The Nasdaq also dropped 0.6% following the late day test to 7,897. Upper support at 7,900-7,850 but held with a move below 7,800 being a bearish signal.

Communication Services and Utilities gained 0.3% and 0.2%, respectively, and were the only sectors that showed strength.

Industrials and Energy were the main sector laggards after sinking 1.4% and 1.2%.

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

   Todd Mitchell