Small-Caps Clear Major Resistance

trade negotiations

U.S. markets snapped out of a 4-session funk while closing mostly higher on chatter of a trade truce with China and slightly better-than-expected economic news. China’s President Xi is expected to present President Trump with terms willing to settle the contentious trade fight between the two nations.

The news was shot down after White House adviser Larry Kudlow said that no preconditions were set ahead of Trump’s meeting with Xi And added the U.S. could move forward with additional tariffs. In any event, volatility settled slightly lower heading into this weekend's G20 summit and ahead of the last trading day of for June.

The Russell 2000 outperformed after surging 1.9% while closing on its session peak of 1,546. Upper resistance at 1,535-1,550 held on the close back above the 200/50-day moving averages.

The Nasdaq gained 0.7% following the intraday run to 7,976. Current and lower resistance at 8,000-8,100 held for the 2nd-straight session with a close above the latter getting 8,150-8,200 and all-time highs in play.

The S&P 500 added 0.4% after testing an intraday high of 2,929. Near-term and lower resistance at 2,925-2,950 was cleared but held by less than a tenth-point with a close above the latter signaling additional momentum.

The Dow extended its losing streak to 3-straight sessions after dipping 10 points, or 0.04%, despite trading to a 2nd-half high of 26,607. Near-term and lower resistance at 26,600-26,850 held with the all-time high at 26,951.

Financials and Real Estate were the strongest sectors after jumping 1% and 0.9%, respectively. Energy was the only sector that settled in the red after giving back 0.7%.

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Arch Capital (ACGL) upgraded to Buy from Hold at Deutsche Bank
KB Home (KBH) upgraded to Buy from Neutral at Buckingham
TripAdvisor (TRIP) upgraded to Buy from Neutral at DA Davidson

FactSet (FDS) downgraded to Sell from Neutral at Goldman Sachs
Sempra Energy (SRE) downgraded to Neutral from Buy at BofA/Merrill
Travelers (TRV) downgraded to Sell from Hold at Deutsche Bank

Before the open: Constellation Brands (STZ), JinkoSolar Holding (JKS)
After the close: None

Friday's economic reports (EST): 
Personal Income and Outlays - 8:30am
Chicago PMI - 9:45am
Consumer Sentiment - 10:00am
Baker-Hughes Rig Count - 1:00pm

Gold closed at $1,412.00 an ounce, down $3.40
Silver settled at $15.29 an ounce, unchanged
Copper finished at $2.71 a pound, down $0.01
Crude Oil was at $59.46 a barrel, up $0.40
Bitcoin Investment Trust (GBTC) ended at $13.82, down $3.26

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

   Todd Mitchell

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