Bulls Snag 2nd-Straight Weekly Win

U.S. markets closed higher for the 2nd-straight week following a positive Friday and progressive trade talks with China along with a goldilocks jobs report. President Trump said the two sides were making swift progress in trade talks, adding we should know over the next 4 weeks if an agreement can be reached.

Chinese Vice Premier Liu He also stated a new consensus has been reached by both parties over the text of a deal. The continued momentum has pushed the major indexes within 2%-3% of their all-times highs with volatility at its lowest levels of the year.

The Russell 2000 showed the most strength after rallying 0.9% while closing at its session high of 1,582. Major resistance at 1,575 and the 200-day moving average was cleared and held with momentum towards 1,600-1,625 on continued strength. The index, however, remains just over 10% away from fresh all-time highs but is on the verge of coming out of correction territory.

The Nasdaq gained 0.6% following the run to 7,940 ahead of the closing bell. Fresh and lower resistance from mid-September at 7,900-7,950 was cleared and held with a move above the latter leading towards 8,100-8,150 and new lifetime highs.

The S&P 500 was up for the 7th-straight session after rising 0.5% while reaching a late day peak of 2,893. Lower resistance at 2,900-2,925 was challenged but held with a move above the latter getting 2,950-2,975 and fresh all-time highs in play.

The Dow edged up 0.2% after testing a high of 26,487 shortly after the opening bell. Upper resistance at 26,250-26,500 was cleared on the close above the former with upside potential towards 26,750-27,000 and new all-time highs on move above the latter.

For the week, the Russell 2000 soared 2.9% and the Nasdaq jumped 2.7%. The Dow and S&P were higher by 2.7% and 2.1%, respectively.

Energy led sector strength after advancing 1.8%. Utilities and Real Estate were up 0.9% and 0.8%, respectively. Materials slipped 0.03% and was the only sector in the red.

For the week, Materials zoomed 4.2% while Financials surged 3.5%.
Communication Services and Consumer Discretionary rose 3.3% and 3.2%, respectively. Consumer Staples was the only sector laggard after falling 0.9%.

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

   Todd Mitchell