Bulls Stay Strong Ahead of Fed Update

August 26, 2021 By: Todd Mitchell
The stock market traded in a tighter range on Wednesday as Wall Street awaited a key Federal Reserve event that will take place on Thursday afternoon. The higher close was mostly fueled by the latest passage from the House of Representatives and its $3.5 trillion budget plan.
 
As part of the legislative action, the House also set up a final vote for the $1.2 trillion infrastructure bill that was passed by the Senate earlier this month. The fourth and fifth-straight day of gains for the major indexes remains a bullish signal with volatility easing back towards key support levels.
 
The Russell 2000 finished at 2,239 (+0.4%) after tapping an afternoon high of 2,252. Key resistance at 2,250 and the 50-day moving average were cleared but levels that held. Continued closes above this area would suggest a retest towards 2,275-2,300 and levels from late June. Below is a chart of the IWM.
 
The S&P 500 tagged another all-time high of 4,501 before ending at 4,496 (+0.2%). Key resistance at 4,500 was tripped but held. Continued closes above this level would signal additional upside towards 4,550-4,600.
 
The Nasdaq closed at 15,041 (+0.2%) with the record peak reaching 15,059. Fresh and lower resistance at 15,050-15,200 was cleared but held. A close above the latter would indicate momentum towards 15,350-15,500.
 
The Dow traded up to 35,501 before settling at 35,405 (+0.1%). Key resistance at 35,500 was breached but held. A close above this level would be an ongoing bullish development for additional gains towards 35,750-36,000 with the lifetime peak at 35,631.

 

Let me show you my Step-by-Step​
BLUEPRINT that Returned 5,500%​
in the last 2 years!

Here are a few recent LIVE Trades: 

  • 249% GAIN in ABBV in 4 days…
  • 203% GAIN in TLRY in 21 days…
  • 174% GAIN in LLY in 8 days…
  • 135% GAIN in AMGN in 18 days…
ANALYST UPGRADES/DOWNGRADES

FactSet (FDS) upgraded to Overweight from Equal Weight at Barclays
Okta (OKTA) upgraded to Strong Buy from Outperform at Raymond James
Univar (UNVR) upgraded to Buy from Hold at Berenberg

Beyond Meat (BYND) downgraded to Hold from Buy at Argus
Boston Beer (SAM) downgraded to Underperform from Market Perform at Cowen
Campbell Soup (CPB) downgraded to Neutral from Overweight at Piper Sandler

THURSDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: 1-800-Flowers.com (FLWS), Abercrombie & Fitch (ANF), Burlington Stores (BURL), Coty (COTY), Dollar General (DG), Frontline (FRO), Hain Celestial Group (HAIN), J.M. Smucker (SJM), Lancaster Colony (LANC), Malibu Boats (MBUU), RedHill Biopharma (RDHL), Sanderson Farms (SAFM), TD Bank (TD), XPeng (XPEV), Yunji (YJ)

After the close: Afya (AFYA), Bill.com Holdings (BILL), Dell Technologies (DELL), F45 Training Holdings (FXLV), Gap (GPS), HP (HPQ), Lantronix (LTRX), Marvell Technology Group (MRVL), Ollie's Bargain Outlet (OLLI), Peloton Interactive (PTON), Rapid Micro Biosystems (RPID), Snap One Holdings (SNPO), VMware (VMW), Workday (WDAY)

THURSDAY'S ECONOMIC NEWS
Jobless Claims - 8:30am

METALS/ OIL
Gold closed at $1,791.00 an ounce, down $17.50
Silver settled at $23.77  an ounce, down $0.12
Copper finished at $4.27 a pound, up $0.01
Crude Oil was at $67.99 a barrel, up $0.38
Bitcoin Investment Trust (GBTC) ended at $39.12 up $0.03

I hope this helps you prepare for the trading day. Make it a great one!

 Todd Mitchell

Not sure the best way to get started?

Follow these 3 simple steps ...

Step #1: Get These FREE Reports & Videos
Options INCOME  Profits   8 Video  Series    Habits that Kill Traders...


Step #2: Enroll in an Advisory or Educational Program
Premium Advisories | Featured  Educational  Programs 


Step #3: Connect with The Community
Trading Concepts Official Facebook Page