[MM_Member_Data name=’firstName’],

U.S. markets tested fresh resistance and set new all-time highs during Friday’s shortened session to wrap up a solid week of gains. The Nasdaq showed the most strength after rising 0.3% while setting an intraday record high of 6,890.

The S&P 500 gained 0.2% after trading to an all-time high of 2,604 while the Dow added 0.1% after failing the 23,600 level. The Russell 2000 climbed 0.2% and came within 3 points of setting another lifetime high.

For the week, the Dow and S&P 500 were up 1% while snapping two-week losing streaks. The Nasdaq rallied 1.4% and the Russell 2000 jumped nearly 2%.

Technology and Materials were up 0.6% and 0.5% on Friday while Consumer Staples and the Financials were the only sectors in the red after slipping 0.07% and 0.04%, respectively.

All sectors closed the week higher led by Technology’s 1.8% advance. Industrials added 1.3% while Consumer Discretionary was up 1.2%.

Global Economy- European markets were mixed on Friday but settled the week mostly higher. Germany’s DAX 30 gained 0.4% while France’s CAC 40 and the Belgium20 were up 0.2%. UK’s FTSE 100 and the Stoxx Europe 600 shed dipped 0.1%.

German November IFO business climate unexpectedly rose 0.7 to a record high of 117.5, stronger than expectations of no change at 116.7. November IFO expectations rose 1.9 to a 7-year high of 111, stronger than expectations for a decline of 0.3 to 108.8.

November IFO current assessment fell 0.4 to 124.4, weaker than expectations for a gain of 0.2 to 125.

Asian markets settled mostly higher with Hong Kong’s Hang Seng Index rising 0.5% and South Korea’s Kospi advancing 0.3%. China’s Shanghai Composite and Japan’s Nikkei climbed 0.1% while Australia’s S&P/ASX 200 gave back 0.1%.

The Japan November Nikkei manufacturing PMI rose 1 to 53.8, the fastest pace in 3-1/2 years and the fifteenth consecutive month of expansion.

U.S. Markit’s manufacturing PMI fell 0.8 points to 53.8 in the preliminary November reading.

The preliminary November services PMI dipped 0.6 points to 54.7.

Market Sentiment- It will be a busy week for the Fed with William Dudley and Jerome Powell speaking on Tuesday. Janet Yellen, William Dudley, and John Williams are scheduled to make comments on Wednesday.

Robert Kaplan is scheduled to speak on Thursday and Friday along with James Bullard.

The iShares 20+ Year Treasury Bond ETF (TLT) traded in a tight range on Friday while closing on the downside. Support at $126.50-$126.25 held with a move below the latter being a bearish signal. Resistance remains at $127-$127.50.

RSI is back in a downtrend after failing resistance at the 60 level.


Market Analysis- The Spiders Dow Jones Industrial Average ETF (DIA) has traded in a tight range over the past three session while setting an all-time of $236.06.

Fresh resistance is at $236-$236.50 with a move above the latter being a continued bullish development. Support is at $235-$234.75with a move below the latter likely leading to continued weakness. RSI is trying to clear September resistance at 70 and would be a bullish signal on continued closes above this level.

Support is at 65 with risk towards 60-55 and early to mid-November support levels.


The Dow Jones Transportation Average ($TRAN) closed slightly lower to end the week and is trying to hold current support at the 9,600 level. A move back below 9,550-9,500 would be a bearish development.

Resistance is at 9,700-9,750 and the 50-day moving average and also represents the mid-September double-top breakout. A move above 9,800 would likely lead to additional strength for another run towards 10,000.

RSI has flattened out after stalling near resistance at 50. Continued closes above this level would be a bullish development.


The percentage of S&P 500 stocks trading above the 50-day moving average is currently at 62% with resistance at 64%-65%. Last Wednesday peak reached 65.07% with continued closes above 65% being a bullish development.

Support is at 60%-58% with risk to 55% and a level that held earlier this month on weakness. A move below 55% would be a very bearish development for the overall market.

The percentage of Nasdaq 100 stocks trading above the 200-day moving average closed just below the 65% level on Friday after testing 66.35% midweek. Resistance is at 65% with Friday’s high tapping 65.42%.

This represented the highest reading of the month with a close above 67.5% being a bullish development. Support is at 62.5% with a move below this level signaling upcoming weakness in Tech.

All the best,
Roger Scott