Tight Trading Ranges Continue

A better-than-expected GDP number helped keep weekly lower lows from coming into play and near-term support levels have been holding throughout the week. However, the major indexes are showing losses for the week and will need another rebound Friday to keep a 7-week winning streak intact.

The Russell 2000 remains in a 6-session trading range after slipping 0.4% and testing an intraday low of 1,571. Near-term and upper support at 1,575-1,560 was breached but held with a close below 1,550 being a bearish development.

The Nasdaq gave back 0.3% following the morning back-test to 7,516. Near-term and upper support at 7,525-7,475 and the 200-day moving average held into the close with a move below the latter being a bearish signal for additional weakness.

The S&P 500 also declined 0.3% after testing a second half low of 2,782. Current and upper support at 2,775-2,750 held for the 2nd-straight session with a close below the latter and the 200-day moving average being a bearish signal.

The Dow extended its losing streak to 3-straight sessions after dropping 0.3% on the late day fade to 25,896. Fresh and upper support at 25,750-25,500 easily held with a close below the latter signaling a near-term top.

Utilities and Consumer Staples led sector strength with gains of 0.6% and 0.5%, respectively. Real Estate and Communication Services added 0.3% and 0.1% to round out the winners.

Materials and Energy were the weakest sectors after giving back 1.2% and 1%. Consumer Discretionary was down 0.5%.sector weakness after falling 0.5%. Real Estate declined 0.3%.

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

   Todd Mitchell