Whipsaw Action Continues

U.S. markets showed continued weakness throughout Friday’s session while setting fresh 2018 lows before surging into positive territory ahead of the closing bell. The whipsaw action in the final hour of trading wrapped up a volatile week with heavy weekly losses not seen in two years.

The Dow jumped 1.4% to after testing a low of 23,360 while closing back above the 24,000 level. The S&P 500 soared 1.5% to reclaim the 2,600 level after tumbling to an intraday low of 2,532 and breaching its 200-day moving average. For the week, both indexes fell 5.2% to post their worst losses since January 2016.

The Nasdaq was higher by 1.4% after trading down to 6,630 and within 1% of its 200-day moving average. The rebound past 6,900 and close just below this level was slightly bullish but the lower highs and lower lows throughout the week remain a bearish signal.
The Russell 2000 gained 1% after tapping an intraday low of 1,436 and September support. The index fell below its 200-day moving average for the first time since August before holding this level into the closing bell.

The Nasdaq finished the week 5.1% lower, representing its worst week since early February of 2016, while the small-caps gave back 4.5%.

iRobot (IRBT) upgraded to Outperform from Market Perform at Raymond JamesUnited Technologies (UTX) upgraded to Buy from Hold at ArgusWolverine

World Wide (WWW) downgraded to Hold from Buy at Pivotal Research

Monday’s scheduled earnings include:

Before the open: Boardwalk Property Pipeline (BWP), First Data (FDC), Insperity (NSP), Loews (L), Restaurant Brands International (QSR)

After the close: Arch Capital Group (ACGL), Brighthouse Financial (BHF), Chegg (CHGG), Danaos (DAC), FMC (FMC), Luminex (LMNX), Otter Tail (OTTR), Ring Central (RNG), Veeco Instruments (VECO), Vipshop Holdings (VIPS), Watts Industries (WTS)

Monday’s economic reports (EST):
Treasury Budget – 2:00pm

Gold closed at $1,315.70 an ounce, down $3.30
Silver settled at $16.14 an ounce, down $0.20
Copper finished at $3.04 a pound, down $0.04
Crude Oil closed at $59.05 a barrel, down $2.10
Bitcoin Investment Trust (GBTC) settled at $14.34, up $0.40

Make it a great day!
Todd Mitchell