Friday closed the holiday shortened week on a quiet note that saw volatility and the range dry up as the week wore on. Friday capped a week in which we made successive higher lows and finished in a bullish tone as all the major indexes finished higher. That said, we would expect a range expansion and volatility to come back next week.
A great chart, posted below, by one of our favorite technicians Chris Kimble details the current resistance in the S&P 500. On the upside the 2000 level is an area of significant resistance with 2040 the next level we'll be watching if the 2000 area is breached. On the downside 1900 is the closest support area we are watching with the August low of 1867 an important psychological level.
From a sector standpoint health care and technology lead the way this week. On the downside the weak get weaker as energy lagged once again. Financials remain fickle as they were mostly flat as talk about September's Fed meeting dominates the headlines.
Have a great weekend.