U.S. markets were weak throughout much of Wednesday’s session after showing some strength, briefly, at the opening bell. The slow drip lower lasted into the afternoon with the major slightly rebounding but extending their longer-term trading ranges for the 13th-straight session.
A closer look at the charts show the 20-day moving averages are in play and have been holding, for the most part, over the past 3-straight sessions. The small-caps and the blue-chips, however, have been lagging over the same time frame and were unable to hold this key level of support.
The Russell 2000 tanked 2% following the pullback to 1,536 and session low. Mid-February and upper support at 1,540-1,525 was breached and failed to hold with risk to 1,500-1,475 and the 50-day moving average on a move below the latter.
The S&P 500 fell 0.7% after tapping an intraday low of 2,768. Near-term and upper support at 2,775-2,750 failed to hold with a close below the latter and the 200-day moving average being a bearish development.
The Nasdaq tanked 0.9% after trading to an intraday low of 7,499. Near-term support at 7,525-7,475 was split on the close just above the 7,500 level with a move below the latter and the 200-day moving average being a bearish signal.
The Dow dropped 0.5% following the midday back-test to 25,633. Current and upper support at 25,750-25,500 was tripped and failed to hold with risk towards 25,250-25,000 and the 200-day moving average on continued weakness.
Materials were the only sector that showed strength after rising 0.2% while Utilities finished flat.
Healthcare and Energy led sector weakness after tumbling 1.5% and 1.3%, respectively. Industrials and Financials were lower by 0.9% and 0.6%.
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Ambarella (AMBA) upgraded to Buy from Hold at Craig-Hallum
Kohl's (KSS) upgraded to Neutral from Underweight at Atlantic Equities
PNC Financial (PNC) upgraded to Outperform from Neutral at Macquarie
CSX (CSX) downgraded to Hold from Buy at Stifel
TripAdvisor (TRIP) downgraded to Underperform from Market Perform at Cowen
VMware (VMW) downgraded to Sell from Neutral at Goldman Sachs
Thursday Before the Open (EST):
Burlington Stores (BURL), Care.com (CRCM), Dixie Group (DXYN), Fly Leasing (FLY), H&R Block (HRB), International Game Technologies (IGT), Kroger (KR), Plug Power (PLUG), Stage Stores (SSI), Tech Data (TECD), Ultra Petroleum (UPL)
Thursday After the close(EST):
AutoWeb (AUTO), Camping World (CWH), Costco Wholesale (COST), El Pollo Loco Holdings (LOCO), Geron (GERN), HCI Group (HCI), Identiv (INVE), Joint (JYNT), Korn Ferry International (KFY), Myomo (MYO), Okta (OKTA), Quanterix (QTRX), T2 Biosystems (TTOO), Upland Software (UPLD)
UPCOMING ECONOMIC NEWS
Thursday's Economic Reports (EST):
Challenger Job-Cut Report - 7:30am
Jobless Claims - 8:30am
Productivity and Costs - 8:30am
Consumer Credit - 3:00pm
METALS / OIL
Gold closed at $1,287.60 an ounce, up $2.90
Silver closed at $15.09 an ounce, down $0.01
Copper finished at $2.91 a pound, down $0.02
Crude Oil is at $56.23 a barrel, down $0.09
Bitcoin Investment Trust (GBTC) ended at $4.65, up $0.08
I hope this helps you prepare for the trading day. Make it a great one!
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