Bears Snag 3rd-Straight Weekly Win

Recession

U.S. markets settled higher to end the week and for the first time in 3 Friday sessions but closed lower for the 3rd-straight week as the continued gains weren’t enough to offset the midweek selloff. Momentum held throughout the session after President Trump said a call is planned with China's President Xi, soon.

The steepening in the U.S. yield curve was likely a more important catalyst the major indexes showed strength as the resurgence in U.S./ China trade talk hopes may have been of less conviction. Volatility also simmered for h 2nd-straight session after trading and closing below key levels of support.

The Russell 2000 zoomed 2.2% while closing a point off its session high of 1,494. Prior and lower resistance at 1,485-1,500 was cleared and held with more important hurdles at 1,510-1,525 and the 200-day moving average.

The Nasdaq jumped 1.7% after snapping a 2-session slide and trading to a high of 7,907. Near-term and upper resistance at 7,850-7,900 was cleared but held with continued closes above 7,950 getting 8,000-8,050 and the 50-day moving average in focus.

The S&P 500 soared 1.4% to extend its winning streak to 2-straight following the late day run to 2,893. Current and lower resistance at 2,875-2,900 was cleared and held with continued closes above the latter getting 2,925-2,950 and the 50-day moving average back in play.

The Dow was up for the 3rd time in 4 sessions after rallying 1.2% and tapping a high of 25,886. Near-term and lower resistance at 25,600-25,800 and the 200-day moving average was reclaimed with continued closes above the 26,000 level being a more bullish signal selling pressure has abated.

For the week, the Dow was lower by 1.5% and the Russell 2000 was down 1.3%. The S&P 500 fell 1% and the Nasdaq was off 0.8%.

Industrials and Technology led sector strength on Friday after rising 1.9% while Financials and Materials advanced 1.8%. There was no sector weakness.

The best performing and only sector higher for the week was Utilities (0.4%). Energy (-5.8%) was the leading sector laggard, followed by Materials (-4.4%), Financials and Industrials (-4.2%), and Communication Services (-4.1%).

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ANALYST UPGRADES/DOWNGRADES

Brinker (EAT) upgraded to Overweight from Equal Weight at Stephens
Intel (INTC) upgraded to Market Perform from Underperform at Northland
PetMed Express (PETS) upgraded to Hold from Sell at Craig-Hallum

BHP Group (BHP) downgraded to Underperform from Neutral at BofA/Merrill
Tapestry (TPR) downgraded to Perform from Outperform at Oppenheimer
Whiting Petroleum (WLL) downgraded to Market Perform from Outperform at Wells Fargo

MONDAY'S EARNINGS ANNOUNCEMENTS  
Before the open: Estee Lauder (EL), Leju Holdings (LEJU), Qiwi (QIWI), Sina (SINA), Weibo (WB), X Financial (XYF)

After the close: ​Baidu (BIDU), Evolving Systems (EVOL), Fabrinet (FN), iQIYI (IQ), Taronis Technologies (TRNX)

UPCOMING ECONOMIC NEWS
Monday’s economic reports (EST): 

E-Commerce Retails Sales - 10:00am


METALS / OIL
Gold closed at $1,523.60 an ounce, down $7.60
Silver settled at $17.12 an ounce, down $0.09
Copper finished at $2.59 a pound, Unchanged 
Crude Oil was at $54.91 a barrel, up $0.30
Bitcoin Investment Trust (GBTC) ended at $13.45, up $0.74


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


   Todd Mitchell


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