Bulls Get Weekly Win Despite Friday’s Whipsaw Action

The market settled mostly lower on Friday after a strong open following the World Health Organization’s update that the coronavirus pandemic remains a deadly threat. Comments from several Fed members also led to the whipsaw action along with option expiration for June contracts.

Tech was the lone standout with the Nasdaq closing higher for the 6th-straight session and coming within 33 points of clearing the recent all-time high at 10,086. However, key support levels are back in focus with volatility reversing course midday and signaling additional near-term weakness for the major indexes.

The Nasdaq closed at 9,946 (+0.03) after trading to a morning high of 10,053. Current resistance at 10,000 was cleared but held with continued closes above this level signaling momentum towards 10,050-10,150.

The Dow closed at 25,871 (-0.8%) with the intraday low tapping 25,759. Key support at 25,750 was also challenged but held with a close below this level keeping downside risk towards 25,000 in play.

The Russell 2000 traded down to 1,409 before ending at 1,418 (-0.6%). Key support at 1,400 was challenged but held with a close below this level signaling additional weakness towards the 1,475 area. Below is a chart of the IWM and mirrors the index.

The S&P 500 settled at 3,097 (-0.6%) after tagging a late day low of 3,083. Key support at 3,100 failed to hold with continued closes below this level keeping downside risk toward 3,025 and the 200-day moving average in play.

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IHS Markit (INFO) upgraded to Equal Weight from Underweight at Morgan Stanley
Nomura (NMR) upgraded to Buy from Hold at Jefferies
Ulta Beauty (ULTA) upgraded to Overweight from Equal Weight at Barclays

Oracle (ORCL) downgraded to Hold from Buy at Argus
Public Storage (PSA) downgraded to Hold from Buy at Argus
Slack Technologies (WORK) downgraded to Sell from Neutral at Goldman Sachs

Before the open: Contango Oil & Gas (MCF)

After the close: Beyond Air (XAIR), Fuwei Films Holdings (FFHL), Invesco Mortgage Capital (IVR), W&T Offshore (WTI)

Chicago Fed National Activity Index - 8:30am
Existing Home Sales - 10:00am

Gold closed at $1,763.00  an ounce, up $21.90
Silver settled at $17.85 an ounce, up $0.34
Copper finished at $2.61  a pound, up $0.03
Crude Oil was at $39.43 a barrel,
 up $0.56
Bitcoin Investment Trust (GBTC) ended at $10.31 down $0.27

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

   Todd Mitchell

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