WealthMintr | 11-11-2018 Todd’s Market Update

11-11-2018 Todd’s Market Update

November 11, 2018 By: Todd Mitchell

Bulls Get Weekly Win but Technical Outlook Remains Weak

U.S. markets ended the week on a sour note as a plunge in oil prices and uneasiness about the housing market resurrected fears of an uncertain path for the economy, both here and abroad. Oil is near its lowest level in eight months after dipping below the $60 level for the first time since February.The damage was mostly limited

as th major indexes closed off their lows while finishing higher for the week. However, the weakness in Tech and the small-caps remain a concern.

The damage was mostly limited as the major indexes closed off their lows while finishing higher for the week. However, the weakness in Tech and the small-caps remain a concern.The Russell 2000 sank 1.8% after testing a low of 1,539. Fresh and upper support at 1,540-1,535 held with a close below the latter being a very bearish development. Note: A death cross is close to forming with the 50-day moving average in danger of falling below the 200-day moving average. This is typically a bearish signal for lower lows.The Nasdaq plummeted 1.7% following the pullback to 7,349. Prior and upper support at 7,350-7,300 was breached on the close back below the 200-day moving average.For the week, the Nasdaq eked out a 0.7% gain while the Russell 2000 climbed 0.1%.The S&P 500 dropped 0.9% while bottoming at 2,764. Upper support at 2,800-2,775 was breached with the 200-day moving average holding into the closing bell.The Dow was lower by 0.8% after testing a midday low of 25,882. Fresh and lower support at 26,000-25,800 and the 50-day moving average held on the close below the former.The Dow was up 2.8% for the week and the S&P 500 added 2.1%.Consumer Staples rose 0.5% to led sector strength. Utilities and Real Estate edged up 0.2% and 0.1%.Communication Services tanked 2.1% to pace sector weakness while Technology was hammered for a 1.7% loss.

ANALYST UPGRADES/DOWNGRADES

Axon (AAXN) upgraded to Outperform from Neutral at BairdCree (CREE) upgraded to Buy from Neutral at Goldman SachsMonster Beverage (MNST) upgraded to Conviction Buy from Buy at Goldman Sachs

Discovery (DISCA) downgraded to In-Line from OutperformSkyworks (SWKS) downgraded to Neutral from Buy at BofA/MerrillYelp (YELP) downgraded to Market Perform from Outperform at Raymond James

EARNINGS

Monday’s earnings announcements (EST):

Before the open: Aecom Technology (ACM), Autohome (ATHM), Kamada (KMDA), Luby’s (LUB), Nordic American Tanker (NAT), Qutoutiao (QTT), Urogen Pharma (URGN)

After the close: AmeriGas Propane (APU), Cypress Energy Partner (CELP), EnSync (ESNC), Focus Financial Partner (FOCS), Kornit Digital (KRNT), Navigator Holdings (NVGS), Roan Resources (ROAN), Unum Therapeutics (UMRX), Veritone (VERI), YY (YY)