U.S. markets opened in the red and reached their sessions lows shortly afterwards following more trade rhetoric ahead of the G20 summit this weekend.

President Trump said there’s a long way to go on tariffs with China and that he is happy with where things are currently at.

The rebound to positive territory and higher weekly highs in the second half of action was a bullish signal before weakness into the close ruined the momentum.

Volatility stayed slightly elevated but held key levels of resistance.

The Russell 2000 was down 0.3% following a late day push to 1,534.

Lower resistance at 1,535-1,550 held with continued closes above the latter signaling a possible run towards 1,560-1,575 and the 50-day moving average.

The Nasdaq also slipped 0.3% despite trading to a second half high of 7,319.

Fresh and lower resistance at 7,300-7,350 held with a close above the latter signaling additional strength.

The S&P 500 was off 0.2% following the late day run to 2,753.

Fresh and lower resistance at 2,750-2,775 held with a close above the latter and the 50-day moving average being a more bullish development.

The Dow dipped 0.1% after testing a session high of 25,479.

Lower resistance at 25,400-25,600 held with a close above the latter and the 50-day moving average signaling additional strength.

Energy and Materials led sector strength after rising 0.7%, respectively. Healthcare climbed 0.3%.

Technology and Financials paced sector laggards after declining 1% and 0.9%.

Consumer Discretionary fell 0.5% and Utilities were lower by 0.04%.

Global Economy – European markets closed mostly higher after all U.K. banks passed the Bank of England’s Brexit scenario stress test.

The Belgium20, France’s CAC 40, and UK’s FTSE 100 were up 0.5%. The Stoxx 600 Europe was up 0.2% while Germany’s DAX 30 was down less than a point, or 0.1%.

Eurozone November economic confidence dipped 0.2 to 109.5, topping estimates for a print of 109.1. T

he November business climate indicator came in at 1.09, topping forecasts of 0.96.

German November unemployment change fell 16,000, versus expectations for a drop of 10,000. The November unemployment rate slipped 0.1% to 5%, stronger than expectations for no change at 5.1%.

UK October net consumer credit rose 0.9 billion pounds, missing estimates of 1 billion pounds.

UK October mortgage approvals rose 67,100, topping forecasts of 64,600.

Asian markets settled mixed as worries over the upcoming G20 and summit talks remained center stage.

China’s Shanghai sank 1.3% and Hong Kong’s Hang Seng fell 0.9%.

Australia’s S&P/ASX 200 rose 0.6% and Japan’s Nikkei added 0.4%. South Korea’s Kospi was up 0.3%.

Japan October retail sales rose 1.2%, topping expectations of 0.4%.

Jobless Claims came in at 234,000, ahead of forecasts of 220,000. The 4-week moving average was at 223,250 versus 218,500. Continuing claims were up 50,000 to 1,710,000.

Personal Income rose 0.5% in October, with spending up 0.6%. September’s 0.2% income gain was unrevised at a 0.2% gain while the 0.4% spending increase was bumped down to 0.2%.

Compensation increased 0.3% versus the prior 0.3% gain. Disposable income rose 0.5% from 0.2%.

The savings rate was 6.2% versus 6.3%. The PCE chain price index, rose 0.2% after edging up 0.1% in September. The core rate was up 0.1% versus the 0.2% gain previously.

On a 12-month basis, the headline deflator posted a 2% year-over-year growth rate, unchanged, while the core rate was 1.8% versus 1.9%.

October Pending Home Sales Index were down 2.6% to 102.6, missing estimates for a flat reading of 104.8.

The index rose 0.7% in the Northeast, fell 1.8% in the Midwest, declined 1.1% in the South and plunged 8.9% in the West.

Pending home sales fell 4.6% year-over-year after declining 3.3% in September.

Market Sentiment – The iShares 20+ Year Treasury Bond ETF (TLT) continued its seesaw action following the intraday push to $115.25.

Resistance at $115-$115.50 was split with both levels holding into the closing bell.

Support remains at $114.50-$114 and the 50-day moving average. A move below $114 would be a slightly bearish signal for additional weakness.

Market Analysis – The Russell 2000 ETF (IWM) closed slightly lower despite making an intraday run to $152.74. Mid-month resistance at $152.50-$153 was split with both levels holding.

Continued closes above the latter would be a bullish signal for a possible push towards $154-$156

Support is at $151-$150.50. A close back below $150 would be a slightly bearish development.

RSI is pushing lower resistance at 50-55.

A close above the latter would signal additional strength for a possible run towards 60-65. Support is at 45-40.

The Consumer Staples Select Spiders (XLP) extended its winning streak to 5-straight session after testing a high of $56.07.

Fresh and lower resistance at $56-$56.50 held with continued closes above the latter being bullish for a possible run towards $58-$59 and fresh 52-week peaks.

Rising support is at $55.25-$54.75.

A close back below the latter and the 50-day moving average would be a slightly bearish signal for lower lows.

RSI is in an uptrend with resistance at 60. A close above this level would be a lead to continued strength towards 70 and the monthly peak. Support is at 55-50.

Existing Position Update

Waiting for slight pullback before moving back in.

Few iron condors on horizon.

Focused on TSLA and AMZN since volatility remains strong.

Will update you with new set ups next few sessions.

Roger Scott