11-21-2018 Todd’s Market Update

Rebound Rally Unimpressive as Blue-Chips Slip



U.S. markets showed strength for the majority of the session with some late day selling pressure resulting in a mixed finish. A report that White House trade advisor Peter Navarro would not be attending a Trump-Xi meeting helped fuel the rebound following 2 days of heavy selling pressure.

Although there are signs of a


The news could be interpreted as a more hopeful omen on the trade front ahead of the G20 meetings in a couple of weeks.


However, volatility remains slightly elevated after near-term support levels held ahead of Thursday’s holiday and Friday’s shortened session.

The Russell 2000 rallied 1.3% after trading to an intraday high of 1,499. Fresh resistance at 1,490-1,500 held with continued closes above the latter signaling a possible near-term bottom.

The Nasdaq rose 0.9% with the morning peak tapping 7,029. Resistance at 7,000-7,050 was split with both levels holding into the closing bell.

The S&P 500 was higher by 0.3% following the intraday push to 2,670. Prior resistance at 2,675-2,700 held with the close below 2,650 being a slightly bearish signal for Friday.

The Dow dipped a point, or 0.0%, despite testing a session high of 24,669. Lower resistance at 24,600-24,800 was breached but a level that held into the closing bell.

Energy led sector strength after rising 1.6%. Communication Services and Consumer Discretionary were up 1.2% and 1.1%, respectively.

Utilities paced sector laggards after sinking 1.5% while Consumer Staples fell 0.8%.


ANALYST UPGRADES/DOWNGRADES

Best Buy (BBY) upgraded to Neutral from Underperform at Wedbush / Tandem Diabetes (TNDM) upgraded to Outperform from Neutral at Baird / Wix.com (WIX) upgraded to Outperform from Sector Perform at RBC Capital


Alliant Energy (LNT) downgraded to Underperform from Neutral at BofA/Merrill / Credit Suisse (CS) downgraded to Market Perform from Outperform at Keefe Bruyette / Lowe's (LOW) downgraded to Hold from Buy at Stifel



EARNINGS

Friday's earnings announcements (EST): 

Before the open: ​Diana Containerships (DCIX), StealthGas (GASS), Sunlands Online Education (STG)

After the close: No major announcements.



UPCOMING ECONOMIC NEWS 
Friday's Economic Reports (EST):
PMI Composite Flash - 10:00am


METALS / OIL

Gold closed at $1,228.00 an ounce, up $6.80
Silver settled at $14.50 an ounce, up $0.23

Copper finished at $2.79 a pound, up $0.02

Crude Oil is at $54.50 a barrel, up $1.26

Bitcoin Investment Trust (GBTC) ended at $5.03 
up $0.14




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

   Todd Mitchell

Rebound Rally Unimpressive as Blue-Chips Slip

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