WEEKEND NOTES

Maybe if the trade war escalates, the market will really start rallying. (sarcasm)

The most important part of the equation is that all major indices HELD THEIR RESPECTIVE SUPPORT LEVELS:

The strongest NASDAQ/NDX/RUSSELL all held 50 day with NASDAQ/NDX really popping off of it Th and Fri. The NDX held to the penny.

The S&P held the 50 day but not nearly as strong. The DOW is just holding the 200 day along with the NYSE…so there is definitely strong and weak.

Add in the SOX holding the 200 day just like it held in late April and the TRANSPORTS just holding onto the 200 day…again, lots of weakness underneath the strength. BIG FINANCIALS are a part of the weaker areas as the XLF just holding support under the 200 day.

The worst remains other markets like EEM,EFA,FXI,EWZ and others but feels like they may be sold out for this second…but still very bearish.

And they say moving averages do not matter. Leave no doubt, if at any time we get a break of these areas, I think all hell breaks loose but for now…they hold.

BIOTECH wakes up off of BIIB news. Look at the IBB, BIB and some proxies doing better like an AMGN and even weaker GILD, REGN coming off the ugly.

A bunch of OIL names at the tips as oil prices remain strong. Very mixed bag in the group though.

MOST IMPORTANTLY, growth again reasserts itself heading into earnings season. A slew of names held the 50 day this past week with a decent amount of names stronger. Keep in mind, most are just in new bases formed during the corrective work in the markets. The hope is and odds favor a bunch break out again but earning’s reports will have a big say.

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