Dow and S&P clear 50-day MA's

VIX Pushes 200-Day Moving Average

January 31, 2019 By: Todd Mitchell

U.S. markets showed strength throughout Wednesday’s session following good corporate earnings and the Fed’s unanimous decision to stand pat on interest rates.The major indexes cleared major resistance levels while breaking out of a two-week trading range and getting the 200-day moving averages back in play.

Meanwhile, volatility tested near-term support levels but remains trapped between its 50-day and 200-day moving averages.The Nasdaq zoomed 2.2% following the intraday run to 7,201. Prior and upper resistance at 7,150-7,200 was cleared but held with continued closes above this level being a bullish signal.The Dow surged 1.8% after reaching an intraday peak of 25,109. Fresh and lower resistance at 25,000-25,200 and the 200-day moving average was cleared and held for the first time since early December.The S&P 500 soared 1.6% following the second half push to 2,690. Near-term and lower resistance at 2,675-2,700 was cleared and held with a close above the latter getting 2,750 and the 200-day moving average in the mix.The Russell 2000 rallied 1.1% after testing an intraday high of 1,490. Lower resistance at 1,490-1,500 was triggered but held with a close above the latter being a bullish signal for higher highs.Technology led sector strength with a 3.1% gain. Consumer Discretionary and Industrials were higher by 2% and 1.6%, respectively. Communication Services, Energy and Healthcare rose 1.4%.There was no sector weakness.

ANALYST UPGRADES/DOWNGRADES

Alliant Energy (LNT) upgraded to Outperform from Market Perform at Wells FargoSynchrony (SYF) upgraded to Buy from Neutral at BofA/MerrillPlug Power (PLUG) upgraded to Neutral from Sell at Roth CapitalAllergan (AGN) downgraded to Sector Perform from Outperform at RBC CapitalCarnival (CCL) downgraded to Hold from Buy at Standpoint ResearchWhirlpool (WHR) downgraded to Underperform from Sector Perform at RBC Capital

EARNINGS Thursday Before the Open (EST):Altria Group (MO), Baxter International (BAX), Celgene (CELG), DowDuPont (DWDP), Eaton (ETN), FirstCash (FCFS), General Electric (GE), Hershey (HSY), International Paper (IP), Kemet (KEM), MasterCard (MA), Nokia (NOK), Raytheon (RTN), Sherwin-Williams (SHW), Sprint (S), United Parcel Service (UPS), Valero Energy (VLO), WestRock (WRK), Xylem (XYL)Thursday After the Close (EST): Amazon.com (AMZN), Cypress Semiconductor (CY), Deckers Brands (DECK), Esterline Technologies (ESL), Fortune Brands (FBHS), McKesson (MCK), Open Text (OTEX), Post Holdings (POST), SkyWest (SKYW), Symantec (SYMC), Yum China Holdings (YUMC)

UPCOMING ECONOMIC NEWS Thursday’s Economic Reports (EST):Challenger Job-Cut Report – 7:30amJobless Claims – 8:30amPersonal Income and Outlays – 8:30amEmployment Cost Index – 8:30amChicago PMI – 9:45amFarm Prices – 3:00pm

METALS / OIL

Gold closed at $1,313.50 an ounce, up $6.60Silver settled at $15.93 an ounce, up $0.09

Copper finished at $2.76 a pound, up $0.04

Crude Oil is at $54.29 a barrel, up $1.13

Bitcoin Investment Trust (GBTC) ended at $4.06, up $0.04