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Northern Trust’s solid Q1 earnings report on Tuesday sparked quite a surge in buying interest.  NTRS finished that session with a 4.4% gain on the heaviest upside trade of ’19.  Strong momentum the next day drove shares to their first close above the 200 day moving average since Oct. 8 of last year.  NTRS is heading for its third straight close above its 200 day while ending the week with four straight higher lows. 

Despite the weakness in bonds over the last three days the financials/banks have held up quite well.  The BKX(KBW Bank Sector Index) may finally close above its 200 day as the week comes to a close. 

We consider NTRS a low risk buy at current levels.  The stock is sitting just above the upper band of what could develop as a major support zone.  This area includes the March and initial April highs as well as the 200 day moving average.  Upside target for NTRS is the December spike high($101.50).  Once past there is room to run.  On the downside, a close back below $91.00 would violate this week’s low sending a clear warning sign that the 200 day is still providing heavy overhead pressure.

At time of publication we are now long NTRS in some managed accounts.