The market struggled on Friday’s open after the U.S. imposed new tariffs on Chinese goods. China responded by criticizing the U.S. for starting the largest trade war in history and violating the WTO rules.
The major indexes saw their lows a short time after the open before drifting higher in the second hour of trading and holding positive territory into the closing bell. Volatility settled below major support levels and is suggesting the trade-war jitters are fading now that they are finally here.
The Nasdaq zoomed triple-digits, or 1.3% after making a run to 7,695. The breakout of an 8-day trading range was a bullish development with continued closes above 7,700 getting fresh all-time highs north of 7,800 in play.
The Russell 2000 extended its win streak to 4-straight sessions after rallying 0.9% and testing an intraday peak of 1,695. The index is within a stone’s throw of its all-time high at 1,708 with breakout potential to 1,750-1,765 on continued momentum.
Tech jumped 2.4% for the week while the small-caps surged 3.2%.
The S&P 500 rose 0.9% after trading to a high of 2,764 and clearing major resistance at 2,750. It was the first close above this level since June 22nd with additional hurdles at 2,775-2,780.
The Dow traded higher for the 5th time in 6 sessions after rising 0.4% while testing an intraday high of 24,520. The index still faces major resistance at 24,625 and a 50-day moving average that is showing signs of curling higher.
For the week, the S&P 500 was up 1.5% and the Dow added 0.8%.
Biogen (BIIB) upgraded to Buy from Neutral at Citi
ManTech (MANT) upgraded to Buy from Hold at SunTrust
Starbucks (SBUX) upgraded to Hold from Sell at DZ Bank
Arbutus Biopharma (ABUS) downgraded to Neutral from Buy at B. Riley FBR
Carnival (CCL) downgraded to Hold from Buy at Argus
Gannett (GCI) downgraded to Underweight from Neutral at JPMorgan
Monday's earnings reports (EST):
Before the open: Helen of Troy (HELE)
After the close: No major announcements
Monday's economic reports (EST):
TD Ameritrade IMX - 12:30pm
Consumer Credit - 3:00pm
Gold closed at $1255.80 an ounce, down $3.00
Silver settled at $16.07 an ounce, down $0.03
Copper finished at $2.82 a pound, down $0.01
Crude Oil is at $73.00 barrel, down $1.14
Bitcoin Investment Trust (GBTC) ended at $10.23 up $0.18
Make it a great day!
Bulls Showing Breakout Potential
Todd Mitchell is the CEO & Founder of Trading Concepts, Inc. He's been trading since 1994 and has mentored over 12,000 traders from Wall Street to Main Street. He's an expert at developing strategies for creating more consistent daily, weekly and monthly income.
Join Over 84,750 Traders Receiving Our FREE Daily Trading Videos