Bears Crack Near-Term Support Levels

U.S. markets remained in a holding pattern after settling lower while trading in tight ranges for the 3rd-straight session. Disappointing economic news and earnings results weighed on sentiment after a number of companies missed revenue expectations.

The focus will now shift from the Financial sector to Tech with a number of key announcements from big-cap companies. Volatility remained slightly elevated and traded in a wider range after failing to holding key resistance levels.

The Russell 2000 was down 0.7% following the morning pullback to 1,547. Near-term and upper support at 1,555-1,540 was breached and failed to hold with a close below the latter and the 50-day moving average being a bearish development.

The S&P 500 was also off 0.7% after trading in a 21-point range while closing on its session low of 2,984. Current and upper support at 3,000-2,975 failed to hold for the first time in 4 sessions with risk towards 2,965-2,950 on a close below the latter.

The Nasdaq was off 0.5% after tapping a low of 8,184 into the closing bell. Current and upper support at 8,200-8,150 was breached and also failed to hold for the 1st time in 4 sessions.

The Dow was lower by 0.4% following the late day back-test to 27,218 and 2nd-straight lower low. Upper support at 27,250-27,000 was tripped and also failed to hold for the 1st time in 4 sessions.

Utilities and Healthcare were the only sector standouts with slight gains of 0.4% and 0.02%.

Industrials were the worst performing sector after sinking 2.1%. Energy and Consumer Discretionary fell 1.1% and 1%, respectively.

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ConocoPhillips (COP) upgraded to Buy from Neutral at BofA/Merrill
Hershey (HSY) upgraded to Neutral from Sell at Goldman Sachs
Silgan Holdings (SLGN) upgraded to Neutral from Underweight at JPMorgan

Alliance Resource Partners (ARLP) downgraded to Neutral from Buy at B. Riley FBR
Wells Fargo (WFC) downgraded to Neutral from Outperform at Macquarie (WUBA) downgraded to Neutral from Outperform at Credit Suisse

Before the open:  ​​Ally Financial (ALLY), BB&T (BBT), Dover (DOV), Genuine Parts (GPC), Honeywell International (HON), Morgan Stanley (MS), Nucor (NUE), Philip Morris (PM), SAP (SAP), Snap-On (SNA), Union Pacific (UNP), Webster Financial (WBS)
After the close: ​​Capital One Financial (COF), Chewy (CHWY), E*Trade Financial (ETFC), Glacier Bancorp (GBCI), Intuitive Surgical (ISRG), Microsoft (MSFT), Resources Connection (RECN), Sketchers (SKX), Western Alliance Bancorp (WAL)

Thursday’s economic reports (EST): 
Jobless Claims - 8:30am
Philadelphia Fed Business Outlook Survey - 8:30am
Leading Indicators - 10:00am

Gold closed at $1,423.30 an ounce, up $12.10
Silver settled at $15.97 an ounce, up $0.29
Copper finished at $2.71 a pound, up $0.01
Crude Oil was at $56.38 a barrel, down $1.24
Bitcoin Investment Trust (GBTC) ended at $12.85, up $0.24

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

   Todd Mitchell

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