11-06-2018 Todd’s Market Update

Near-Term Resistance Levels Cleared

U.S. markets opened mixed while spending the majority of the session trading in positive territory afterwards. There was some late day weakness before a strong rally to session highs into the close and ahead of the midterms elections.

The outcome should help ease the near-term uncertainty of how Congress is controlled but other headwinds remains. Volatility is still giving a neutral reading although the bears have been in control since early October.

The Dow was up 0.7% after trading to an intraday peak of 25,651. Lower resistance at 25,600-25,800 was cleared and held with a move above the latter and the 50-day moving average signaling additional strength.

The S&P 500 soared 0.6% following the run to 2,756. Upper resistance at 2,740-2,750 was cleared with continued closes above 2,765-2,775 and the 200-day moving average being a more bullish development.

The Nasdaq snapped a 2-session losing streak after rising 0.6% while trading to a high of 7,400. Lower resistance at 7,400-7,450 failed to hold with more important hurdles at 7,500-7,525 and the 200-day moving average.

The Russell 2000 also climbed 0.6% after testing an intraday high of 1,557. Near-term resistance at 1,560 held for a 3rd-straight session with a close above this level getting 1,675-1,680 in play.

Materials and Industrials were the strongest sectors after rallying 1.6% and 1.1%, respectively. and 1.4%. Utilities added 0.7% while Technology, Communication Services, Consumer Staples, and Real Estate were all higher by 0.6%.

There were no sector laggards.


Netflix (NFLX) upgraded to Buy from Underperform at Buckingham
iRobot (IRBT) upgraded to Buy from Hold at Canaccord
Under Armour (UA, UAA) upgraded to Overweight from Neutral at Piper Jaffray
Encana (ECA) downgraded to Equal Weight from Overweight at Morgan Stanley
Hilton (HLT) downgraded to Hold from Buy at Argus
Starbucks (SBUX) downgraded to Sell from Hold at DZ Bank


Wednesday's earnings announcements (EST): 

Before the open: ​21st Century Fox (FOXA), Barrett Business Services (BBSI), Cars.com (CARS), Dean Foods (DF), Dish Network (DISH), Groupon (GRPN), Humana (HUM), Kelly Services (KELYA), Meet Group (MEET), Michael Kors (KORS), Office Depot (ODP), Radware (RDWR), Southern Company (SO), Tecnoglass (TGLS), Vitamin Shoppe (VSI), Wolverine World Wide (WWW)

After the close: New York Times (NYT) downgraded to Underweight from Equal Weight at Barclays , Valvoline (VVV) downgraded to Underperform from Buy at BofA/Merrill, 
Western Union (WU) downgraded to Market Perform from Outperform at Wells Fargo

Wednesday's Economic Reports (EST):
FOMC Meeting (Begins)
MBA Mortgage Applications - 7:00am
Consumer Credit - 3:00pm


Gold closed at $1,226.30 an ounce, down $6.00
Silver settled at $14.50 an ounce, down $0.15

Copper finished at $2.73 a pound, down $0.03

Crude Oil is at $62.21 a barrel, down $0.56

Bitcoin Investment Trust (GBTC) ended at $7.49 up $0.43

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

   Todd Mitchell

Near-Term Resistance Levels Cleared

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