Bulls Hold Near-Term Support Levels

The choppy action afterwards lasted into the closing bell with the market giving back its gains to finish slightly lower. Despite the pullback, the consolidation phase following the Monday morning breakout is looking bullish for higher highs as near-term support levels held.

The Russell 2000 was the weakest link after falling 0.7% while closing at its session low of 1,577. Fresh and upper support at 1,575-1,565 held on the close back below the 200-day moving average.

The Nasdaq was down 0.1% after testing an opening low of 7,524. Upper support at 7,525-7,475 was breached and failed to hold with a close below the latter and the 200-day moving average signaling additional weakness.

The Dow dipped 0.1% following morning pullback to 25,966. Fresh and upper support at 26,000-25,750 held with a close below the latter being a slightly bearish signal.

The S&P 500 also slipped 0.1% after testing to a low of 2,789. Current and upper support at 2,775-2,750 with a close below the latter and the 200-day moving average signaling a possible near-term top.

Technology led sector strength after adding 0.2%. Consumer Discretionary and Consumer Staples were up 0.1% to round out the winners.

Materials paced sector weakness after declining 0.6%. Healthcare dropped 0.4% while Energy and the Financial were lower by 0.3%.

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

   Todd Mitchell