10-25-2018 Todd’s Market Update

Bulls Rebound to Hold Prior Support Levels


U.S. markets rebounded on Thursday with all of the major indexes posting solid gains while mostly recovering prior support levels. The rally occurred on the busiest day of 3Q earnings season with a number of high-profile companies reporting after the close.

The Dow and S&P are now back in positive territory for the year along with Tech adding to its gains. The small-caps are still down just over 2% while volatility remains slightly elevated.

The Dow and S&P are now back in positive territory for the year along with Tech adding to its gains. The small-caps are still down just over 2% while volatility remains slightly elevated.

The Nasdaq zoomed 3% following the push to 7,364. Fresh resistance at 7,350-7,400 held with a close above the latter being a continuing bullish signal.

The Russell 2000 rallied 2.2% after tapping a high of 1,506. The close back above prior support at 1,500 was slightly bullish with resistance now at 1,520-1,525.

The S&P 500 soared 1.9% while testing a second-half high of 2,722. The close above the 2,700 level was slightly bullish with resistance now at 2,725-2,750.

The Dow surged 1.6% after trading to a session high of 25,104. The close just below the 25,000 level was slightly bearish but keeps fresh resistance at 25,250-25,500 in play.

Technology and Communication Services led sector strength after jumping 3.4% and 3.3%, respectively. Consumer Discretionary was higher by 3%.

Utilities were the only sector laggard after giving back 1.6%.

ANALYST UPGRADES/DOWNGRADES

Caterpillar (CAT) upgraded to Hold from Sell at DZ Bank
Owens Corning (OC) upgraded to Overweight from Equal Weight at Barclays
Tesla (TSLA) upgraded to Outperform from Peer Perform at Wolfe Research
Illinois Tool Works (ITW) downgraded to Neutral from Buy at Seaport Global
STMicroelectronics (STM) downgraded to Underperform from Outperform at Baird
UPS (UPS) downgraded to Neutral from Buy at BofA/Merrill


EARNINGS

Thursday's earnings announcements (EST): 

Before the open: Autoliv (ALV), Cabot Oil & Gas (COG), Franklin Electric (FELE), Goodyear Tire & Rubber (GT), Moody’s (MCO), Phillips 66 (PSX), Ryder System (R), Tenneco (TEN), Weyerhaeuser (WY)

After the close: ​None



UPCOMING ECONOMIC NEWS
Thursday's Economic Reports (EST):
GDP - 8:30am
Consumer Sentiment - 10:00am
Baker-Hughes Rig Count - 1:00pm


METALS / OIL

Gold closed at $1,232.40 an ounce, up $1.30
Silver settled at $14.63 an ounce, down $0.05

Copper finished at $2.75 a pound, down $0.01

Crude Oil is at $66.98 a barrel, up $0.65

Bitcoin Investment Trust (GBTC) ended at $7.04 down $0.15



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

   Todd Mitchell

Bulls Rebound to Hold Prior Support Levels

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About the Author Todd Mitchell

Todd Mitchell is the CEO & Founder of Trading Concepts, Inc. He's been trading since 1994 and has mentored over 12,000 traders from Wall Street to Main Street. He's an expert at developing strategies for creating more consistent daily, weekly and monthly income.

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