11-25-2018 Todd’s Market Update

Bears Get 2nd-Straight Weekly Wins

U.S. markets closed mostly lower in Friday’s shortened trading session as falling oil prices and light volume weighed on the major indexes. The slide in oil prices have put the commodity in a bear market and weighed heavily on the energy sector.

Volatility remains slightly elevated with the major indexes extending their losing streak to 2-straight weeks. 

Tech continues to look shaky with a death cross close to forming in the Nasdaq.

The Dow dropped 0.7% after trading down to 24,268. Prior and upper support at 24,200-24,000 held with a close below the latter and late June lows being a continuing bearish signal.

The S&P 500 also declined 0.7% following the pullback to 2,631 and fresh monthly low. Support at 2,625-2,600 held with a move below the latter signaling additional selling pressure.

For the week, the Dow fell by 4.4% while the S&P 500 stumbled 3.8%.

The Nasdaq was down for the 4th time in 5 sessions after giving back 0.5% and testing a low of 6,919. Support at 6,900-6,850 held with a close below the latter being a continuing bearish development.

The Russell 2000 was up a half-point, or 0.03%, following the intraday push to 1,498. Resistance at 1,490-1,500 held with continued closes above the latter being a slightly bullish signal.

The Nasdaq sank 4.3% for the week and the Russell 2000 tumbled 2.6%.

Consumer Staples and Financials led sector strength after rising 0.4% and 0.2%.

Energy plummeted 3.1% and was easily the weakest sector while
Communication Services and Materials were down 1.3% and 1.1%, respectively.

For the week, there were no sectors that closed higher. Technology was hammered for a 6.1% loss while Energy was with a 4.9% pullback. Communication Services and Consumer Discretionary tanked 4.4% and 4.1%, respectively.


There was no analysts coverage during Friday’s shortened session.


Monday's earnings announcements (EST): 

Before the open: ​Diana Shipping (DSX), Ituran Location and Control (ITRN), JinkoSolar Holding (JKS), Puxin Limited (NEW)

After the close: ​Buckle (BKE), Corporation America Airports (CAAP), Enanta Pharmaceuticals (ENTA), MTS Systems (MTSC), StoneCo (STNE)

Monday's Economic Reports (EST):
Chicago Fed National Activity Index - 8:30am
Dallas Fed Manufacturing Survey - 10:30am


Gold closed at $1,223.20 an ounce, down $4.80
Silver settled at $14.24 an ounce, down $0.26

Copper finished at $2.77 a pound, down $0.02

Crude Oil is at $50.59 a barrel, down $4.04

Bitcoin Investment Trust (GBTC) ended at $4.88 
down $0.15

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

   Todd Mitchell

Bears Get 2nd-Straight Weekly Wins

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