Bulls Push Prior November Support Levels

U.S. markets showed continued strength to start the week while testing and clearing near-term and major resistance levels that served as prior support from mid-November.

Much of the strength was attributed to the beginning of the first face-to-face meeting between U.S. and China officials since both sides agreed to a 90-day truce in the ongoing trade war.

The Russell 2000 rallied 1.8% following the intraday run just south of 1,412. Fresh and lower resistance at 1,400-1,425 was cleared and held with the latter representing prior November support.

The Nasdaq was up 1.3% after reaching a midday high of 6,855 while closing above the 6,800 level. Fresh resistance at 6,850-6,900 was breached but held with continued closes above 6,800 and prior November support being a bullish signal.

The S&P 500 rose 0.7% after reaching a session peak of 2,566. The index closed just below major resistance at 2,550 and prior November support by a quarter-point with additional hurdles at 2,575-2,600.

The Dow gained 0.4% following the intraday push to 23,687 and closing at 23,531. Fresh and lower resistance at 23,600-23,800 was breached but held with a close back below 23,500 and prior November support being a slightly bearish signal.

Consumer Discretionary led sector leaders after jumping 2.3%. Energy and Communication Services rose 1.5% and 1.1%, respectively.

Utilities and Consumer Staples were the only sector laggards after giving back 0.7% and 0.1%, respectively.

Adobe (ADBEWealth Strength IndexAAPL is Extremely Up and trending Up) upgraded to Buy from Hold at Pivotal Research
Citi (C) upgraded to Outperform from Neutral at Macquarie
General Motors (GM) upgraded to Outperform from Market Perform at BMO Capital

Quarterhill (QTRH) downgraded to Hold from Buy at Canaccord
Skyworks (SWKSWealth Strength IndexAAPL is Extremely Up and trending Up) downgraded to Perform from Outperform at Oppenheimer
Urban Outfitters (URBN) downgraded to Neutral from Overweight at JPMorgan

Tuesday Before the Open (EST):
​​Azz (AZZ), Helen of Troy (HELE), Lindsay Manufacturing (LNN), Motorcar Parts (MPAA), Northern Technologies (NTIC)

Tuesday After the Close (EST): Exfo (EXFO), Kush Bottles (KSHB), Smart Global Holdings (SGH)

Tuesday’s Economic Reports (EST):
NFIB Small Business Optimism Index – 6:00am
Redbook – 8:55am
International Trade in Goods – 8:30am
Jolts – 10:00am
Consumer Credit – 3:00pm

Gold closed at $1,289.90 an ounce, up $4.10
Silver settled at $15.76 an ounce, down $0.03
Copper finished at $2.63 a pound, down $0.01
Crude Oil is at $48.63 a barrel, up $0.32
Bitcoin Investment Trust (GBTC) ended at $4.86,
up $0.33

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

Todd Mitchell