U.S. markets were tentative throughout Monday’s session while trading in tight ranges and settling mostly higher as the start of 2Q earnings season heats up. The Financial sector will be the main focus throughout the week but other sectors like Tech will also help shape the action.
Volatility was slightly elevated after closing back above a key level of resistance as Wall Street prepares for lowered guidance from analysts throughout the first quarter. The U.S./ China trade tiff will likely be given as the main excuse for disappointments by companies that miss forecasts, while the ones that beat with rosy outlooks could help sector rotation to minimize the overall impact.
The Nasdaq gained 0.2% following the opening run to 8,264 and 2nd-straight all-time closing high. Fresh and lower resistance at 8,250-8,325 was tripped and held with key and near-term support at the 8,200 level.
The Dow nudged up 0.1% after tapping an all-time record high of 27,364 on the open while trading in a 70-point range afterwards. Fresh support at 27,250-27,000 easily held on the intraday test to 27,294 with a close below the latter being a cautious signal for additional weakness.
The S&P 500 was up a half-point, or 0.02%, after opening at a lifetime peak of 3,017. Current and upper support at 3,000-2,975 easily held on the midday fade to 3,008 with a move below 2,950 being a slightly bearish development going forward.
The Russell 2000 once again lagged after falling 0.5% while tapping an intraday low of 1,558. Near-term and upper support at 1,555-1,540 and the 50-day moving average held with the index remaining in a 9-session trading range.
Utilities paced sector leaders after rising 0.4% while Technology and Consumer Discretionary were higher by 0.3%. Energy and Financials led sector weakness after giving back 0.9% and 0.6%, respectively. Industrials fell 0.4% to round out the losers.
I hope this helps you prepare for the trading day. Make it a great one!