U.S. markets settled settled lower across the board for the first time in 15 sessions despite news from White House trade adviser Peter Navarro that the U.S./ China Phase One trade deal would likely be signed next week. China’s Vice-Premier Liu He has accepted an invitation to lead a delegation to the U.S. this upcoming weekend. Once here, Liu is expected to sign the phase one trade deal that was recently negotiated to deescalate the U.S./ China trade war.
The pullback breached near-term support levels but no major technical damage was down. However, the rise in volatility remains a concern and is signaling additional weakness in the market heading into the last trading day of the year, and possibly into early January.
The Nasdaq was down for the 2nd-straight session after giving back 0.7% while testing a low of 8,909. New and upper support at 8,900-8,850 was challenged but held with a close below the latter getting 8,800-8,750 back in focus.
The S&P 500 fell 0.6% after testing a first half low of 3,216. Near-term and upper support at 3,225-3,200 was breached and failed to hold with a move below the latter signaling additional weakness towards 3,175-3,150.
The Dow also declined 0.6% after trading to an intraday low of 28,428. Current and upper support at 28,600-28,400 was breached and failed to hold with a close below the latter signaling additional risk towards 28,200-28,000.
The Russell 2000 slipped 0.3% to extend its losing streak to 3-straight sessions following the opening backtest to 1,658. Current and upper support at 1,665-1,650 was breached but failed to hold by less than a point with a close below the latter signaling a further backtest towards 1,640-1,625.
Energy was the only sector to show strength after advancing 0.4%. Communication Services sank 1% to lead sector weakness while Consumer Discretionary and Technology were down 0.6%.
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LendingTree (TREE) upgraded to Buy from Neutral at Compass PointTTEC Holdings (TTEC) initiated with an Outperform at William BlairGoodyear Tire (GT) initiated with a Buy at Nomura InstinetAridis Pharmaceuticals (ARDS) initiated with a Buy at H.C. Wainwright
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TUESDAY’S EARNINGS ANNOUNCEMENTS Before the open: None
After the close: None
TUESDAY’S ECONOMIC NEWSRedbook – 8:55amChicago PMI – 9:45amPending Home Sales Index – 10:00am
METALS/ OILGold closed at $1,518.60 an ounce, up $0.50Silver settled at $18.00 an ounce, up $0.06Copper finished at $2.83 a pound, up $0.01Crude Oil was at $61.67 a barrel, down $0.05Bitcoin Investment Trust (GBTC) ended at $8.42, down $0.16
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Todd Mitchell
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