Clone of Small-Caps Tap Fresh Low

U.S. markets settled higher to end the week and for the first time in 3 Friday sessions but closed lower for the 3rd-straight week as the continued gains weren’t enough to offset the midweek selloff. Momentum held throughout the session after President Trump said a call is planned with China’s President Xi, soon.

The steepening in the U.S. yield curve was likely a more important catalyst the major indexes showed strength as the resurgence in U.S./ China trade talk hopes may have been of less conviction. Volatility also simmered for h 2nd-straight session after trading and closing below key levels of support.

The Russell 2000 zoomed 2.2% while closing a point off its session high of 1,494. Prior and lower resistance at 1,485-1,500 was cleared and held with more important hurdles at 1,510-1,525 and the 200-day moving average.

The Nasdaq jumped 1.7% after snapping a 2-session slide and trading to a high of 7,907. Near-term and upper resistance at 7,850-7,900 was cleared but held with continued closes above 7,950 getting 8,000-8,050 and the 50-day moving average in focus.

The S&P 500 soared 1.4% to extend its winning streak to 2-straight following the late day run to 2,893. Current and lower resistance at 2,875-2,900 was cleared and held with continued closes above the latter getting 2,925-2,950 and the 50-day moving average back in play.

The Dow was up for the 3rd time in 4 sessions after rallying 1.2% and tapping a high of 25,886. Near-term and lower resistance at 25,600-25,800 and the 200-day moving average was reclaimed with continued closes above the 26,000 level being a more bullish signal selling pressure has abated.

For the week, the Dow was lower by 1.5% and the Russell 2000 was down 1.3%. The S&P 500 fell 1% and the Nasdaq was off 0.8%.

Industrials and Technology led sector strength on Friday after rising 1.9% while Financials and Materials advanced 1.8%. There was no sector weakness.

The best performing and only sector higher for the week was Utilities (0.4%). Energy (-5.8%) was the leading sector laggard, followed by Materials (-4.4%), Financials and Industrials (-4.2%), and Communication Services (-4.1%).