Small-Caps Slack In Shortened Week

U.S. markets showed strength throughout Thursday’s session while settling the week mostly higher. The small-caps struggled and closed on the opposite side of the action after testing a lower low to end the shortened week lower.

Much of the news was dominated by the DOJ’s redacted version of the Mueller report with the market more focused on ongoing U.S. / China trade negotiations and all-time highs. Volatility closed back below major support with a down-trending 50-day moving average still intact.

The Dow rose 0.4% after trading to a fresh 2019 high of 26,602. Fresh and lower resistance at 26,500-26,750 was cleared and held with a close above the latter getting 27,000 and all-time highs in play.

The S&P 500 climbed 0.2% following the push to 2,908 and close above the 2,900 level for the 5th-straight session. Major resistance remains at 2,925 with the current all-time peak just north of 2,940 and a move above this level getting 2,950-2,975 in play.

The Nasdaq was up 2 ticks, or 0.02% after tapping a high of 8,002. Prior and major resistance from late September at 8,000 was cleared but held by 2 points with a continued close above this level keeping 8,100-8,150 and all-time highs in the mix.

The Russell 2000 dipped nearly 2 points, or 0.1%, while testing a session low of 1,556. Major support at 1,550 and the 50-day moving average held with a move below this level being a near-term bearish development.

For the shortened week, the Dow was up 0.6% and the Nasdaq advanced 0.2%. The Russell 2000 tumbled 1.2% while the S&P 500 slipped just over 2 points, or 0.1%.

Industrial led sector strength on Thursday after jumping 1.2% while Real Estate rose 0.8%. Energy fell 0.5% while Financials and Consumer Discretionary gave back 0.3% and 0.03% to round out the sector laggards.

The market is closed today (on Friday). Our next issue will be Monday evening, enjoy the 3-day weekend.

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

   Todd Mitchell