The stock market traded in a tight range on Tuesday before selling pressure returned in the final hour to give the victory to the bears. Rising coronavirus cases overseas prompted an extended lockdown in Germany while commentary from Fed Chair Powell and Treasury Secretary Yellen weighed on sentiment.
Powell and Yellen both stated more must be done to limit the damage from the coronavirus pandemic and to promote a full economic recovery. Meanwhile, volatility rose while clearing and holding a key level of resistance.
The Russell 2000 finished at 2,185 (-3.6%) and back below its 50-day moving average with the late day plunge reaching 2,175. Prior and upper support at 2,200-2,175 failed to hold. A close below the latter would likely lead to a further pullback towards 2,150-2,125.
The Nasdaq hit an afternoon low of 13,202 while closing at 13,227 (-1.1%). Current and upper support at 13,250-13,100 was breached and failed to hold. A drop below the latter would signal a retest towards 13,000-12,850.
The Dow tapped an intraday low of 32,356 before settling at 32,423 (-0.9%). New and upper support at 32,500-32,250 was failed to hold. A move below the latter would indicate a further fade towards 32,000-31,750.
The S&P 500 ended at 3,910 (-0.8%) after testing a low of 3,901. Current and upper support at 3,925-3,900 was tripped and failed to hold. A close below the latter would suggest additional weakness towards 3,875-3,850 and the 50-day moving average.
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Netflix (NFLX) upgraded to Buy from Hold at ArgusTexas Instruments (TXN) upgraded to Buy from Neutral at LongbowSouthwest (LUV) upgraded to Buy from Hold at ArgusBurlington Stores (BURL) downgraded to Hold from Buy at BerenbergDiscovery (DISCA) downgraded to Sell from Neutral at UBSTencent Music (TME) downgraded to Hold from Buy at China Renaissance
WEDNESDAY’S EARNINGS ANNOUNCEMENTS Before the open: APi Group (APG), Barings BDC (BBDC), Cerevel Therapeutics (CERE), Enerpac Tool Group (EPAC), General Mills (GIS), Huazhu Group Limited (HTHT), MariMed (MRMD), Seanergy Maritime Holdings (SHIP), Tsakos Energy Navigation (TNP), Vital Farms (VITL), Winnebago Industries (WGO), Worthington Industries (WOR)After the close: Aptinyx (APTX), Brainsway (BWAY), Concentrix (CNXC), GrowGeneration (GRWG), H.B. Fuller (FUL), KB Home (KBH), Lightbridge (LTBR), Motorsport Games (MSGM), Navidea Biopharmaceuticals (NAVB), QAD (QADA), RH (RH), Shoe Carnival (SCVL), TELA Bio (TELA)
WENESDAY’S ECONOMIC NEWSMBA Mortgage Applications – 7:00amDurable Goods Orders – 8:30amPMI Manufacturing Index – 9:45am
METALS/ OILGold closed at $1,725.10 an ounce, down $13.00Silver settled at $25.23 an ounce, down $0.54Copper finished at $4.08 a pound, down $0.06Crude Oil was at $57.52 a barrel, down $3.95Bitcoin Investment Trust (GBTC) ended at $46.75 down $2.75
I hope this helps you prepare for the trading day. Make it a great one!
Todd Mitchell
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