Bulls Maintain 3-week Winning Streak

major indexes

U.S. markets were choppy to start Friday’s action after President Trump called off strikes on Iran because they were not commensurable relative to Iran's recent downing of a U.S. drone. The major stock indexes rebounded off the opening lows on news Vice President Mike Pence postponed a China policy address amid positive signs on trade.

The trip into positive territory was short-lived as weakness returned and lasted into the closing bell. The consolidation was a healthy sign following the breakout to higher highs throughout the week although the rise in volatility remains a slight concern ahead of the upcoming G20 summit.

The Russell 2000 had its 4-session winning streak snapped after giving back 0.9% while testing a low of 1,546. Fresh and upper support at 1,550-1,535 was breached and failed to hold by a half-point with the close above the 50/200-day moving averages remaining a slightly bullish signal.

The Nasdaq was lower by 0.2% following the opening pullback to 8,011. Current and upper support at 8,000-7,950 held on the 2nd-straight close above the former with a move below the latter opening up risk towards 7,900-7,850 and 50-day moving average.

The S&P 500 slipped 0.1% after testing a morning low of 2,946. Near-term and upper support at 2,950-2,925 held by a half-point with a move below the latter signaling additional risk towards 2,900-2,875 and the 50-day moving average.

The Dow also dipped 0.1% despite coming within 44 points of its September 2018 peak of 26,951 shortly after the open. The midday fade to 26,705 failed to hold fresh and upper support at 26,750-26,500 with a close below the latter signaling additional weakness towards 26,250-26,000 and the 50-day moving average.

For the week, the Nasdaq surged 3% and the Russell 2000 rose 1.8%. The Dow jumped 2.4% and the S&P 500 soared 2.2%.

Energy paced sector strength after rising 0.7% with Healthcare gaining 0.5%. Real Estate was the weakest sector after dropping 1.1% while Industrials, Technology and Consumer Discretionary were down 0.5%.

The best performing sectors for the week included Energy (3.7%), Technology (2.9%), Industrials (2.8%) and Communication Services (2.7%). The were no sectors that closed lower.

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LabCorp (LH) upgraded to Buy from Hold at Deutsche Bank
Phillips 66 (PSX) upgraded to Buy from Neutral at Citi
SeaWorld (SEAS) upgraded to Buy from Neutral at Goldman Sachs

Carnival (CCL) downgraded to Equal Weight from Overweight at Barclays
Grainger (GWW) downgraded to Underweight from Neutral at Atlantic Equities
Sealed Air (SEE) downgraded to Neutral from Buy at BofA/Merrill


There are no major announcements.

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

Gold closed at $1,400.10 an ounce, up $3.20
Silver settled at $15.29 an ounce, down $0.20
Copper finished at $2.70 a pound, down $0.01
Crude Oil was at $57.60 a barrel, up $0.72
Bitcoin Investment Trust (GBTC) ended at $13.55, up $0.82

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

   Todd Mitchell

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