Small-Caps Breakout Above the 1,600 Level

U.S. markets showed strength throughout Friday while closing near session highs following a surprisingly strong jobs report. The small-caps and Tech led the way higher while the Transports also had an especially strong day which was another positive sign for the market.

The gains help offset two days of selling pressure with the major averages closing mostly higher for the week, excluding the blue-chips. Volatility settled back below a key level of support but is giving a neutral reading following last week’s whipsaw action.

The Russell 2000 zoomed 2% after ending at 1,614 and session high. Major resistance from early October at 1,600 was finally cleared and held with fresh and additional hurdles now at 1,620-1,635.

The Nasdaq surged 1.6% following the late day push just north of 8,164 and a level that held into the close. Prior resistance at 8,150-8,200 was cleared and held with the all-time high at 8,176.

The S&P 500 soared 1% after reaching a late day peak of 2,947 while closing a couple points below this level. Prior and major resistance at 2,950 held with the all-time peak at 2,954 and blue-sky territory towards 2,975-3,000 on continued near-term strength.

The Dow was higher by 0.8% while testing an intraday peak of 26,534. Lower resistance at 26,500-26,750 was cleared and held with a move above the latter getting 27,000 in play and the all-time high at 26,951.

For the week, the Russell 2000 rallied 1.6% and the Nasdaq edged up 0.2%, its 6th-straight weekly win. The S&P 500 was up 6 points, 0.2% while the Dow was down 39 points, or just over 0.1%.

Industrials and Consumer Discretionary jumped 1.2% to lead sector strength while Materials, Communication Services and Technology rose 1%. There were no sector laggards.

The best performing sectors for the week included HealthCare (1.5%), Financials (1.3%) and Industrials (1.1%). Energy (-5.1%) was easily the worst performing sector followed by Communication Services (-1.5%) and Consumer Discretionary (-0.9%).

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Domtar (UFS) upgraded to Buy from Neutral at Goldman Sachs
Seagate (STX) upgraded to Buy from Hold at Argus
Tilray (TLRY) upgraded to Hold from Underperform at Jefferies

Electronic Arts (EA) downgraded to Neutral at MKM Partners
Target (TGT) downgraded to Market Perform from Outperform at Bernstein
Yeti (YETI) downgraded to Neutral from Buy at Goldman Sachs

Before the open (EST):
​Affiliated Managers Group (AMG), Bausch Health Companies (BHC), Camtek (CAMT), DSP Group (DSPG), Full House Resorts (FLL), Kelly Services (KELYA), Sapiens International (SPNS), Sysco (SYY), Twin Disc (TWIN), Tyson Foods (TSN)

After the close(EST):
​​​​Advanced Emission Solutions (ADES), AmeriGas Propane (APU), Brighthouse Financial (BHF), Cabot (CBT), Del Taco Restaurants (TACO), Earthstone Energy (ESTE), Fabrinet (FN), Glu Mobile (GLUU), Hertz Global (HTZ), Howard Hughes (HHC), Invitation Homes (INVH), Itron (ITRI), Kilroy Realty (KRG), Lannett (LCI), Masimo (MASI), Mosaic (MOS), New York Mortgage Trust (NYMT), Ormat Technologies (ORA), ParkOhio Holdings (PKOH), RealPage (RP), SolarEdge Technologies (SEDG), Tanger Factory Outlet (SKT), USD Partners (USDP), Veeco Instruments (VECO)

Monday's economic reports (EST): 
TD Ameritrade IMX - 12:30pm

Gold closed at $1,281.30 an ounce, up $9.30
Silver settled at $14.98 an ounce, up $0.36
Copper finished at $2.81 a pound, up $0.03
Crude Oil was at $61.86 a barrel, up $0.32
Bitcoin Investment Trust (GBTC) ended at $7.32 up $0.47

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

   Todd Mitchell

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