Coolhand's Market Analysis

Yes, I am still expecting an upside breakout on the major averages sooner or later, but geopolitical tensions can sure challenge a bulls resolve. There was a lot of intrigue surrounding the air strike of a Syrian airbase late last week. The fact that it occurred almost parallel to the wining and dining of the Chinese President and his Generals (who were not given advance notice of the event) by President Trump at his Mar-a-Lago estate was almost surreal. Futures dove in the early hours on the news, but recovered by the open. Friday's action ended up flat, but the market was down for the week, though not a ton.



Price on the S&P 500 changed little over the past week as it continued to probe that declining line of resistance, but not break it. It is now becoming compressed between that resistance and support at the 50 dma and the rising trend line just below Friday's closing price. The longer term is still up, so price is likely to resolve to the upside.



The banking sector remains weak, but somewhat stable for the time being as price on the BKX remains caught between its 50 and 200 day moving averages.

The market is now headed toward the tax deadline next week, which is seasonally positive. The OEX P/C is leaning bullish for Monday and the 10 day average is constructive for the market. The new week appears to be slanted toward the bulls, but the headlines may force a continuation of choppy action.