Dow and S&P clear 50-day MA's

VIX Closes at Monthly Low

January 27, 2019 By: Todd Mitchell

U.S. markets showed continued strength throughout Friday’s action following solid earnings and forecasts along with renewed optimism over economic growth. The major indexes failed to clear the previous Friday intraday peaks but were able to extend their weekly winning streak to 5-straight, for the most part.

There wasn’t much reaction following late afternoon news that President Trump and congressional leaders reached a deal to reopen the federal government thru mid-February. Meanwhile, volatility closed at its lowest level for the month and continues to challenge major support levels.The Nasdaq surged 1.3% following the second half push to 7,174. Prior and lower resistance at 7,200-7,250 held with continued closes above the 7,150 level being a bullish signal.The Russell 2000 also rallied 1.3% after testing an intraday high 1,484. Lower and upper resistance at 1,465-1,480 were cleared and held to get 1,500 back in play and prior support from mid-November.The Nasdaq added 0.1% for the week and the Russell 2000 rose a third of a point.The Dow was higher by 0.8% following the morning push to 24,860. Lower resistance at 24,750-25,000 was tagged but held with a close above the latter and the 200-day moving signaling additional strength.The S&P 500 soared 0.9% after reaching a midday peak of 2,672. Mid-month and lower resistance at 2,675-2,700 was tagged but held with a close above the latter getting 2,725-2,750 and the 200-day moving average back in the mix.For the week, the Dow edged up 0.1% while the S&P 500 slipped 0.2%.Material were the strongest sector after advancing 1.9% while Technology was higher by 1.4%.Utilities and Consumer Staples were the only sector laggards after falling 1.4% and 0.4%, respectively.For the week, Technology and Financials rose 1% and 0.9%, respectively. Healthcare and Communication Services were down 1.3%.

ANALYST UPGRADES/DOWNGRADES

Carnival (CCL) upgraded to Outperform from Neutral at MacquarieFlir Systems (FLIR) upgraded to Outperform from Neutral at BairdRockwell Automation (ROK) upgraded to Buy from Reduce at HSBCDish (DISH) downgraded to Reduce from Hold at HSBCHawaiian Holdings (HA) downgraded to Hold from Buy at Deutsche BankIntel (INTC) downgraded to Hold from Buy at Needham

EARNINGS Monday Before the Open (EST):Alliance Resource Partners (ARLP), Bank of Hawaii (BOH), Caterpillar (CAT), Four Seasons Education (FEDU), Opus Bank (OPS), Provident Financial (PROV), Scorpio Bulkers (SALT)Monday After the Close (EST): AK Steel (AKS), Brown & Brown (BRO), Crane (CR), Ethan Allen (ETH), Graco (GGG), J&J Snack Foods (JJSF), Meta Financial (CASH), Rambus (RMBS), South State (SSB), Veritex Holdings (VBTX), Whirlpool (WHR)