Small-Caps Shine Following Another Choppy Session

September 27, 2021 By: Todd Mitchell

The stock market was split on Monday despite better-than-expected economic news concerning durable goods. The report showed orders surged 1.8% in August after rising 0.5% in July.

The small-caps and the blue-chips showed strength while Tech was weighed down by the 10-year Treasury yield with the rate topping the 1.5% mark. The broader market was slightly weak as Wall Street fretted over this week’s debt limit dilemma and negotiations on big spending and tax bills.

The Russell 2000 tapped an afternoon high of 2,293 while ending at 2,281 (+1.5%). Fresh and lower resistance from late August at 2,275-2,300 was reclaimed. A move above the latter would suggest further upside towards 2,300-2,325.

The Dow tested a high of 35,061 (+0.2%) before settling at 34,869. Key resistance at 35,000 was cleared but held. A close above this level and the 50-day moving average would indicate ongoing strength towards 35,250-35,500.

The Nasdaq closed at 14,969 (-0.5%) following the intraday fade to 14,864. Key support at 15,000 was breached and failed to hold. A close below 14,900 and the 50-day moving average would be a slightly bearish development with additional weakness towards 14,800-14,650.

The S&P 500 traded down to 4,436 while finishing at 4,443 (-0.3%) and just above its 50-day moving average. Upper support at 4,450-4,425 was tripped and failed to hold. A drop below the latter would signal slippage towards 4,400-4,375.

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ANALYST UPGRADES/DOWNGRADES

Box (BOX) upgraded to Outperform from Market Perform at JMP Securities
Western Union (WU) upgraded to Buy from Neutral at Citi
Yandex (YNDX) upgraded to Buy from Neutral at UBS

Altice USA (ATUS) downgraded to Market Perform from Outperform at Raymond James
Lordstown Motors (RIDE) downgraded to Sell from Neutral at Goldman Sachs
Summit Hotel Properties (INN) double downgraded to Underperform from Buy at BofA

TUESDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: China Online Education (COE), Endava (DAVA), FactSet Research Systems (FDS), IHS Markit (INFO), Synnex (SNX), Thor Industries (THO), United Natural Foods (UNFI)

After the close: ​​Cal-Maine Foods (CALM), Glimpse Group (VRAR), Micron Technology (MU), NetSol Technologies (NTWK), Park City Group (PCYG), Precision Optics (PEYE), Vintage Wine Estates (VWE)

TUESDAY'S ECONOMIC NEWS
​​S&P Corelogic Case-Shiller - 9:00am
Consumer Sentiment - 10:00am

METALS/ OIL
Gold closed at $1,752.00 an ounce, up $0.30
Silver settled at $22.69  an ounce, up $0.27
Copper finished at $4.29 a pound, unchanged
Crude Oil was at $75.46 a barrel,  up $1.51
Bitcoin Investment Trust (GBTC) ended at $34.18 down $0.05

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

 Todd Mitchell

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