Bulls End 2018 on High Note



U.S. markets showed strength on Monday’s open after President Trump said he spoke on the phone with Chinese President Xi Jinping and that trade negotiations were moving along very well as they made big progress toward cutting a deal.

The developments were short-lived as the market turned choppy while giving back the majority of the gains by midday. Another rebound rally ensued afterwards with the major indexes closing higher. However, the month of December was a disaster, overall, as the major indexes were hit with heavy losses while closing the year with single-digit declines.

The current rebound and historic Santa rally could last into the New Year as Wall Street comes back from vacation and prepares for the upcoming 4Q earnings season. Volatility continues to show bullish signs after falling for the 4th-straight session but remains above key levels of support.

The Dow got back on track after soaring 1.2% and testing a high of 23,333.
Upper resistance at 23,200-23,400 was challenged for the 2nd-straight session on the close above the former with a move above 23,500 signaling additional strength.

The S&P 500 rose 0.9% after trading to a high of 2,509. Lower resistance at 2,500-2,525 was cleared and held with a close above 2,550 being a more bullish development.

The Nasdaq closed in the green for the 4th-straight session after gaining 0.8% while reaching a peak of 6,659. Resistance at 6,650-6,700 held for the 2nd-straight session with a close above the latter being a continuing bullish signal.

The Russell 2000 was also up 0.8% following the late day run to 1,348 and also extended its winning streak to 4-straight sessions. Lower resistance at 1,350-1,365 held with a close above 1,375 being a more bullish development and confirming a possible near-term bottom.

Healthcare and Consumer Discretionary were the strongest sectors after rising 0.8% and 0.6%, respectively. Financials and Industrials were higher by 0.4%.

Communication Services paced sector laggards after giving back 0.4%. Real Estate was off 0.2% while Utilities and Energy dipped 0.1%.

The market is closed Tuesday for the New Year’s holiday.


ANALYST UPGRADES/DOWNGRADES

No major initiations.


EARNINGS

Wednesday's earnings announcements (EST):
No major announcements




UPCOMING ECONOMIC NEWS 
Wednesday's Economic Reports (EST):
Redbook - 8:55am
PMI Manufacturing Index - 9:45am


METALS / OIL

Gold closed at $1,281.30 an ounce, down $1.70
Silver settled at $15.54 an ounce, up $0.10

Copper finished at $2.63 a pound, down $0.05

Crude Oil is at $45.85 a barrel, up $0.73

Bitcoin Investment Trust (GBTC) ended at $3.96, 
down $0.21




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

   Todd Mitchell

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