Bulls Rebound but Resistance Holds

U.S. markets showed strength throughout much of Thursday’s action following a goldilocks GDP report and a stable jobless claims number. Near-term resistance levels held ahead of the late day weakness that came in the final hour of trading.

The major indexes held the majority of their gains with the small-caps being the weak link. Volatility relaxed after closing above a key support level but remains slightly elevated heading into the final trading day of the month.

The Nasdaq rose 0.3% following the morning run to 7,595. Prior and lower resistance at 7,600-7,650 was challenged but held with a close above the latter getting 7,700-7,750 back in play.

The S&P 500 climbed 0.2% after tapping a first half high of 2,799. Key resistance at 2,800 held with a close back above this level signaling possible strength towards 2,825-2,850.

The Dow also added 0.2% following the intraday run to 25,218. Prior and lower resistance at 25,250-25,500 held with a close above the latter and the 200-day moving average being a more bullish development.

The Russell 2000 fell 0.3% despite testing a morning peak of 1,500. Near-term and lower resistance at 1,500-1,515 was tapped but held with continued closes above these levels signaling a possible near-term bottom.

Consumer Discretionary led sector strength after rising 0.7%. Technology, Real Estate and Healthcare gained 0.6%.

Energy lead sector weakness after giving back 1.3%. Financials and utilities rounded out the laggards with losses of 0.3% and 0.2%, respectively.

 

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

   Todd Mitchell