Bulls Recover Near-Term Resistance Levels on Mild Rebound

U.S. markets showed strength throughout Wednesday on reports China is open to a partial trade deal despite the recent blacklisting of Chinese companies. However, some of the stipulations were no more tariffs being imposed by the Trump administration, including duties scheduled this month and in December.

While nothing is certain, the positive chatter comes ahead of the upcoming 13th round of negotiations between top U.S. and Chinese officials. The major indexes made a run at near-term resistance levels but remain in a sideways trading range and trapped between their 50/200-day moving averages.

The Nasdaq rose 1% after tapping a midday high of 7,930. Current and lower resistance at 7,900-7,950 was cleared and held with a close above the latter getting 8,000 and the 50-day moving average back in play.

The S&P 500 was up 0.9% following the intraday push to 2,929. Prior and lower resistance at 2,900-2,925 was cleared and held with more important hurdles at 2,950 and the 50-day moving average.

The Dow gained 0.7% after trading to a 2nd half high of 26,424. Near-term and lower resistance at 26,400-26,600 and the 50-day moving average was challenged but held with a close above the 26,800 level being a more bullish signal selling pressure has abated.

The Russell 2000 advanced 0.5% following the opening pop to 1,484. Prior and lower resistance at 1,475-1,490 was recovered with a close above the 1,500 level getting at 1,510-1,525 and the 50/200-day moving averages back in focus.

Technology was the strongest sector after soaring 1.5% while Materials and Financials jumped 1.1% and 0.9%, respectively. There were no sector laggards.

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Chipotle (CMG) upgraded to Hold from Underperform at Gordon Haskett
Sleep Number (SNBR) upgraded to Outperform from Market Perform at Raymond James
Roku (ROKU) upgraded to Outperform from Neutral at Macquarie

Domino's Pizza (DPZ) downgraded to Hold from Buy at Argus
FedEx (FDX) downgraded to Market Perform from Outperform at Bernstein
iRobot (IRBT) downgraded to Underperform from Market Perform at Raymond James

Before the open: Delta Air Lines (DAL)

After the close: IDT (IDT), Voxx International (VOXX)

Thursday's economic reports (EST): 
Jobless Claims - 8:30am
Consumer Price Index - 8:30am
Treasury Budget - 2:00pm

Gold closed at $1512.80 an ounce, up $8.90
Silver settled at $17.81 an ounce,  up $0.11
Copper finished at $2.57 a pound, unchanged
Crude Oil was at $52.67 a barrel, up $0.32
Bitcoin Investment Trust (GBTC) ended at $10.38 up $0.74

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

   Todd Mitchell

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