11-26-2018 Todd’s Market Update

Bulls Rebound/VIX Closes Below 20

U.S. markets bounced back after the holiday weekend, propelled higher by Italy relaxing its stance on the budget impasse with the EU, and hopes for a trade deal between the U.S. and China later this week at the G20 meeting.

Oil prices rebounded to close near $52 a barrel following Friday’s plunge towards $50. 

Meanwhile, volatility closed below key levels of support but faces additional hurdles before signaling a possible market bottom.

​The Nasdaq soared 2.1% after making a late day run 7,083. Resistance at 7,100-7,150 held with a close above the latter being a slightly bullish signal. However, a death cross is close to forming in the index with the 50-day moving average just 4 points away from falling below the 200-day moving average.

The S&P 500 surged 1.6% following the intraday run to 2,674. Upper resistance at 2,650-2,675 was challenged with both levels holding into the closing bell.

The Dow zoomed 1.5% after trading to a high of 24,673. Prior and lower resistance at 24,600-24,800 was cleared and held with a close above the latter being a continuing bullish signal.

The Russell 2000 rallied 1.2% while reaching an intraday peak of 1,510. Lower resistance at 1,500-1,515 was cleared with continued closes above the latter being a slightly bullish signal.

Technology and Communication Services gained 2.3% to pace sector leaders. Consumer Discretionary added 2.2% and Financials advanced 2%.

There were no sector laggards.


AT&T (T) upgraded to Neutral from Sell at MoffettNathanson
Cognizant (CTSH) upgraded to Buy from Neutral at Goldman Sachs
Intuit (INTU) upgraded to Outperform from Sector Perform at RBC Capital

Eli Lilly (LLY) downgraded to Neutral from Buy at Citi
Southern Copper (SCCO) downgraded to Reduce from Hold at HSBC.
Westpac Banking (WBK) double downgraded to Sell from Buy at Deutsche Bank


Tuesday's earnings announcements (EST): 

Before the open: ​​Bank of Nova Scotia (BNS), Cracker Barrel Old Country Store (CBRL), Eaton Vance (EV), Hibbett Sports (HIBB), SeaDrill Limited (SDRL)

After the close: ​​Arco Platform (ARCE), BrightView Holdings (BV), Central Garden & Pet (CENT), GW Pharmaceuticals (GWPH), Nutanix (NTNX), Ooma (OOMA), Salesforce (CRM), Stein Mart (SMRT), Voxeljet (VJET)

Tuesday's Economic Reports (EST):
Redbook - 8:55am
S&P Corelogic Case-Shiller - 9:00am
FHFA House Price Index - 9:00am
Consumer Confidence - 10:00am


Gold closed at $1,222.40 an ounce, down $0.80
Silver settled at $14.20 an ounce, down $0.04

Copper finished at $2.76 a pound, down $0.01

Crude Oil is at $51.70 a barrel, up $1.11

Bitcoin Investment Trust (GBTC) ended at $4.49 
down $0.39

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

   Todd Mitchell

Bulls Rebound/VIX Closes Below 20

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