[MM_Member_Data name=’firstName’],

U.S. markets traded in an extremely tight range to start the week while closing mixed with small losses and gains. The small-caps tested a fresh all-time high with the broader market also pushing record highs intraday.

Financial stocks were mixed and the Transports pulled back while Mining stocks edged higher. Tech held positive territory after the Nasdaq missed setting a lifetime high by 11 points.

Earnings: Netflix (NFLX) reported earnings after the closing bell. The company missed profit expectations by a penny on higher-than-expected revenue. Bank of America (BAC) and Goldman Sachs Group (GS) are announcing numbers ahead of Tuesday’s opening bell.

Global Economy –European markets were mixed despite China’s quarterly growth figures topping expectations. The Stoxx Europe 600 closed up by less than 2 points, while France’s CAC 40 and Germany’s DAX 30 closed slightly lower.

Asia markets were split as China’s Shanghai Composite fell 1.43% after being down as much as 2.6% while the Shenzhen Composite dropped over down 4%. Hong Kong’s Hang Seng Index, South Korea’s Kospi index, and Singapore’s Straits Times Index all finished Monday higher. Japan’s market was closed for Marine Day.

China’s Q2 GDP growth came in at 6.9%, topping the forecasts for 6.8% growth.

Measures of June activity also pointed to strength in the economy, as readings on industrial production and retail sales came in above expectations.

Eurozone inflation in June met an initial estimate of 1.3%, according to figures from Eurostat.

U.S. Economy-The Empire State Manufacturing Survey fell to 9.8 for July from a three-year high of 19.8 in June.

The 4-Week Bill Announcement checked in at $45 billion on the offering amount.

Market Sentiment –The Board of Governors of the Federal Reserve System held a Closed Meeting to review and determine the advance and discount rates to be charged by the Federal Reserve Banks.

The Fed funds futures continue to show little chance for another rate hike over the near term, with only about 44% risk for action by the end of the year. The next FOMC meeting is July 25th-26th.

The iShares 20+ Year Treasury Bond ETF (TLT) made another attempt to clear its 50-day moving average but stalled at $123.87. Resistance at $124-$124.25 held. Support is trying to move up to $123.25-$123 with additional help at $122-$121.75 and the 100/200-day moving averages.


Market Analysis-The Russell 2000 traded to an all-time high north of 1,434 today while finishing the session higher. The index is showing momentum and could make a possible run towards 1,450-1,475 over the near-term.

Support is at 1,425-1,420 with a move below the latter likely signaling a short-term top and a backtest to 1,400 and the 50-day moving average.


The iShares Russell 2000 (IWM) tested a high of $142.46 and appears ready to make a run at $144.50-$145 on continued strength. Short-term support is at $141.50-$141 with a move below $140-$139 and the 50-day moving average being a bearish development.


The Spiders S&P Metals and Mining ETF (XME) has lagged the market’s overall gains this year but has been in a nice uptrend after holding its 50-day moving average earlier this month.

The 100-day moving average is also starting to curl higher with current support at $31.25-$31. Continued closes above resistance at $31.75-$32 would be bullish for a possible return to the mid-$30’s. 



All the best,

Roger Scott