Bulls Get Weekly Win Despite Friday’s Flat Action
The market lost ground on Friday following a flood of economic news and inaction from Congress on developments for a coronavirus relief package. No deal was announced on that front as lawmakers have broken for recess until Labor Day.
Despite the flat session, the major indexes posted another winning week and remain on track to test old and new higher highs after advancing their winning streaks to 3 and 4 weeks.
The Nasdaq tested a low of 10,972 before finishing at 11,019 (-0.2%). Current support at 11,000 was breached but held with a close below this level indicating additional downside weakness towards the 10,750 area.
The Dow settled slightly higher despite tapping an intraday low of 27,759 while finishing 27,931 (+0.1%). Key support at 27,750 was challenged but held for the 3rd-straight session with a move below this level getting 27,250 back in focus.
The S&P 500 traded to a low of 3,361 before ending at 3,372 (-0.02%). Near-term support at 3,350 was challenged but held with a move below this level suggesting further weakness towards the 3,300 area.
The Russell 2000 closed at 1,577 (-0.1%) after tagging a morning low of 1,567. Crucial resistance at 1,575 was tripped but held with a close below this level suggesting a further pullback towards the 1,550 level. Below is a chart of the IWM.