U.S. markets were sluggish throughout Monday’s session following a mixed bag of 1Q earnings from the Financial sector. The slack action comes ahead of a shortened trading week and follows last Friday’s rally to higher highs.
With the major indexes signaling slightly overbought levels, the chances of a continued backtest are high and would be a healthy signal before a possible run at all-time highs. Volatility rose slightly but easily held a key level of resistance.
The Russell 2000 was lower by 0.4% following the pullback to 1,574. Upper support at 1,575-1,570 and the 200-day moving average held with risk towards 1,555-1,550 and the 50-day moving average on a close below the latter.
The Dow dipped 0.1% after trading to a midday low of 26,316. Current and upper support at 26,250-26,000 held with a move below the latter opening up risk towards 25,750 and the 50-day moving average.
The S&P 500 slipped 2 points, or 0.1% following the backtest to 2,896 shortly after the open. Near-term and upper support at 2,900-2,875 was breached but held with a close below 2,850 being a slightly bearish development.
The Nasdaq also gave back 0.1% after testing an intraday low of 7,933. Upper support at 7,925-7,850 held with a move below 7,800 signaling a possible near-term top.
Consumer Staples led sector strength after rising 0.6%. Healthcare and Consumer Discretionary were higher by 0.3% and 0.2%, respectively.
Financials and Real Estate paced sector weakness after falling 0.7%. Industrials, Materials and Energy fell 0.6%.
I hope this helps you prepare for the trading day. Make it a great one!