Bullish Rebound Unimpressive

U.S. markets

U.S. markets rebounded on Tuesday to close higher following the worst trading day of the year to start the week. The gains helped the major indexes snap multi-session losing streaks with near-term resistance levels holding into the closing bell.

Aside from the Nasdaq, the major indexes posted an inside session, meaning higher highs and lower lows were avoided. This is typically a neutral signal with more follow through needed to determine the next possible trend. Volatility settled lower but held a key level of support to keep things interesting.

The Nasdaq snapped a 6-session losing streak after rallying 1.4% and reaching a second half high of 7,845. Near-term and lower resistance at 7,850-7,900 held with more important hurdles at 7,950-8,000 and the 50-day moving average.

The S&P 500 soared 1.3% while trading to an intraday high of 2,884. Lower resistance at 2,875-2,900 was tripped and held with additional hurdles at 2,925 and the 50-day moving average.

The Dow jumped 1.2% following the run to 26,038 ahead of the closing bell. Near-term and lower resistance at 26,000-26,250 was cleared and held with a close above 26,500 and the 50-day moving average being a more bullish signal.

The Russell 2000 snapped a 4-session slide after gaining 1% and testing and closing on the late day high of 1,502. Fresh and lower resistance at 1,500-1,515 was cleared and held with a close above the latter and the 200-day moving average signaling a possible near-term bottom.

Technology and Financials surged 1.7% and 1.6%, respectively, to lead sector strength while Industrials, Communication Services and Consumer Discretionary were up 1.5%. Energy was the only sector that showed weakness after dipping 0.1%.

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ANALYST UPGRADES/DOWNGRADES

Aimco (AIV) upgraded to Buy from Neutral at Mizuho
Bancolombia (CIB) upgraded to Overweight from Neutral at JPMorgan
Northrop Grumman (NOC) upgraded to Overweight from Equal Weight at Morgan Stanley

Chemours (CC) downgraded to Hold from Buy at Argus
Rio Tinto (RIO) downgraded to Hold from Buy at Jefferies
Trex Company (TREX) downgraded to Neutral from Buy at Sidoti

WEDNESDAY'S EARNINGS ANNOUNCEMENTS  
Before the open: Autohome (ATHM), Blucora (BCOR), CVS Health (CVS), Global Net Lease (GNL), Inogen (INGN), Kelly Services (KELYA), Lumber Liquidators (LL), Office Depot (ODP), Seaspan (SSW), Vector Group (VGR)

After the close: ​​​​3D Systems (DDD), Amdocs (DOX), Camping World Holdings (CWH), EnerSys (ENS), Flowers Foods (FLO), Green Dot (GDOT), Jack in the Box (JACK), Lyft (LYFT), Monster Beverage (MNST), Pegasystems (PEGA), Rayonier (RYN), Skyworks Solutions (SWKS), TripAdvisor (TRIP), Zillow (Z)

UPCOMING ECONOMIC NEWS
Wednesday’s economic reports (EST): 
MBA Mortgage Applications - 7:00am
Consumer Credit - 3:00pm


METALS / OIL
Gold closed at $1,484.20 an ounce, up $7.70
Silver settled at $16.44 an ounce, up $0.05
Copper finished at $2.55 a pound, up $0.01
Crude Oil was at $53.53 a barrel, down $0.55
Bitcoin Investment Trust (GBTC) ended at $14.77, up $0.17


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


   Todd Mitchell


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