Stocks ended the session mixed on heavy trade. The NYSE and S&P 500 posted modest gains of 0.3% and 0.1% respectively. The Nasdaq closed fractionally lower, while the Dow Jones Industrial Average, S&P MidCap 400 and small-cap Russell 200 all shed 0.1%. The airline, home builder and automotive sectors displayed relative weakness on Friday, while coal and oil services showed strength.

For the third time in as many days, the session closed with internals mixed. Volume skyrocketed on the Nasdaq by 20.7% and on the NYSE by 58.4%. Advancing volume outpaced declining volume by 1.2 to 1 on both exchanges. Although the Nasdaq narrowly missed an accumulation day, the NYSE saw institutional buying as it closed at a new 52 week high.

Since testing its 50-day MA on March 12th, the iShares MSCI Brazil Index Fund (EWZ) has been consolidating in a pennant like formation at its 20-day EMA. A move above the seven day high of $68.30 could provide a buying opportunity in this ETF. We are adding EWZ to the watchlist. Trade details can be found in the watchlist segment of the newsletter.

 

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.