U.S. markets were volatile on Wednesday after opening sharply higher following the worst ever Christmas Eve for stocks. The gains were short lived as the major indexes turned negative within 30 minutes of trading.
It appeared the selling pressure would lead to another rout, but buyers stepped up as the market tries to find a near-term bottom.
Volatility stayed slightly elevated despite falling nearly 17% after holding the 30 level.The Nasdaq was up for just the 2nd time in 9 sessions after surging 5.8% while trading to an intraday high of 6,555. Near-term resistance at 6,550-6,600 was cleared and held with continued closes above 6,700 being a more bullish signal.The Russell 2000 snapped an 8 session slide after jumping 5% and testing a high of 1,330. Fresh and lower resistance at 1,325-1,350 was cleared with a move above 1,375 signaling a possible near-term bottom.The Dow rallied 5% following the late day run to 22,878 and close on the session high. Lower resistance at 22,800-23,000 was cleared and held with continued closes above 23,500 being a more bullish development.The S&P 500 also soared 5% following the close at 2,467 and session peak. Near-term resistance at 2,475-2,500 held with a move above 2,550 signaling a possible short-term bottom.Energy led sector strength after zooming 6.2% while Technology rose 6%. Consumer Discretionary and Communication Services were higher by 5.9% and 5.6%, respectively.There were no sector laggards.
Oracle (ORCL) upgraded to Buy from Hold at Standpoint Research Marine Products (MPX) upgraded to Neutral from Sell at B. Riley FBRMindbody (MB) downgraded to Neutral from Buy at DA Davidson
Thursday’s earnings announcements (EST):
Before the open: CSP (CSPI)After the close: Live Ventures (LIVE)
UPCOMING ECONOMIC NEWS Thursday’s Economic Reports (EST):Jobless Claims – 8:30amFHFA House Price Index – 9:00amNew Home Sales – 10:00amConsumer Confidence – 10:00amFarm Prices – 3:00pm
METALS / OIL
Gold closed at $1,273.00 an ounce, up $1.20Silver settled at $15.12 an ounce, up $0.30
Copper finished at $2.70 a pound, up $0.04
Crude Oil is at $46.73 a barrel, up $4.20
Bitcoin Investment Trust (GBTC) ended at $4.25, down $0.54
I hope this helps you prepare for the trading day. Make it a great one!
Todd Mitchell
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