Bulls Maintain 3-week Winning Streak

U.S. markets were choppy to start Friday’s action after President Trump called off strikes on Iran because they were not commensurable relative to Iran’s recent downing of a U.S. drone. The major stock indexes rebounded off the opening lows on news Vice President Mike Pence postponed a China policy address amid positive signs on trade.

The trip into positive territory was short-lived as weakness returned and lasted into the closing bell. The consolidation was a healthy sign following the breakout to higher highs throughout the week although the rise in volatility remains a slight concern ahead of the upcoming G20 summit.

The Russell 2000 had its 4-session winning streak snapped after giving back 0.9% while testing a low of 1,546. Fresh and upper support at 1,550-1,535 was breached and failed to hold by a half-point with the close above the 50/200-day moving averages remaining a slightly bullish signal.

The Nasdaq was lower by 0.2% following the opening pullback to 8,011. Current and upper support at 8,000-7,950 held on the 2nd-straight close above the former with a move below the latter opening up risk towards 7,900-7,850 and 50-day moving average.

The S&P 500 slipped 0.1% after testing a morning low of 2,946. Near-term and upper support at 2,950-2,925 held by a half-point with a move below the latter signaling additional risk towards 2,900-2,875 and the 50-day moving average.

The Dow also dipped 0.1% despite coming within 44 points of its September 2018 peak of 26,951 shortly after the open. The midday fade to 26,705 failed to hold fresh and upper support at 26,750-26,500 with a close below the latter signaling additional weakness towards 26,250-26,000 and the 50-day moving average.

For the week, the Nasdaq surged 3% and the Russell 2000 rose 1.8%. The Dow jumped 2.4% and the S&P 500 soared 2.2%.

Energy paced sector strength after rising 0.7% with Healthcare gaining 0.5%. Real Estate was the weakest sector after dropping 1.1% while Industrials, Technology and Consumer Discretionary were down 0.5%.

The best performing sectors for the week included Energy (3.7%), Technology (2.9%), Industrials (2.8%) and Communication Services (2.7%). The were no sectors that closed lower.

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

   Todd Mitchell