Bulls Stay Strong as Volatility Eases to Multi-Month Lows

U.S. markets showed strength throughout Wednesday’s session after China exempted some U.S. imports from tariffs with reports that talks are progressing ahead of plan for trade talks in early October.

The small-caps led the way higher for the 3rd-straight session after clearing major resistance while the major indexes closes within 1%-2% of all-time highs. Volatility continued to ease after closing below major support and is showing signs of higher market highs.

The Russell 2000 rocketed 2.1% after testing a high north of 1,575 while closing back above its 50-day moving average. Prior and lower resistance from early July at 1,575-1,590 was cleared but held by a smidge with a close above the latter signaling additional momentum towards 1,600-1,615.

The Nasdaq gained 1.1% after trading and closing at a fresh monthly high of 8,169. Prior and lower support at 8,150-8,200 was cleared and held with a move above the latter leading to a possible retest towards 8,250-8,300 and the all-time high at 8,339.

The Dow was up for the 6th-straight session after jumping 0.9% while also closing on its high of 27,137. Near-term and lower resistance at 27,000-27,250 was cleared and held with a move above the latter getting the July all-time high at 27,398 in play.

The S&P 500 climbed 0.7% after closing on the session peak just south of 3,001. Lower resistance from late July at 3,000-3,025 was recovered with a pop past the latter opening up blue-sky territory towards 3,050-3,075 with the July record high at 3,027.

Technology, Materials, and Healthcare were higher by 1% while Industrials advanced 0.9%. Real Estate was the only sector in the red after giving back 0.2%.

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ANALYST UPGRADES/DOWNGRADES

Alcoa (AA) upgraded to Outperform from Neutral at Credit Suisse
Callaway Golf (ELY) upgraded to Outperform from Market Perform at Raymond James
Micron (MU) upgraded to Buy from Neutral at Longbow

Costco (COST) downgraded to Perform from Outperform at Oppenheimer
Dave & Buster's (PLAY) downgraded to Market Perform from Outperform at William Blair
Fortis (FTS) downgraded to Market Perform from Outperform at BMO Capital

THURSDAY'S EARNINGS ANNOUNCEMENTS  
Before the open: Duluth Holdings (DLTH), Kroger (KR), MasterCraft Boat Holdings (MCFT)

After the close: A-Mark Precious Metals (AMRK), Broadcom (AVGO), Oracle (ORCL), Park City Group (PCYG), RF Industries (RFIL), Vince Holding (VNC)

UPCOMING ECONOMIC NEWS
Thursday’s economic reports (EST): 
Jobless Claims - 8:30am
CPI - 8:30am
Treasury Budget - 2:00pm

METALS / OIL
Gold closed at $1,503.20 an ounce, up $4.00
Silver settled at $18.17 an ounce, down $0.02
Copper finished at $2.61 a pound, down $0.02
Crude Oil was at $55.95 a barrel, down $1.97
Bitcoin Investment Trust (GBTC) ended at $12.28, up $0.23


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


   Todd Mitchell


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