Major Moving Averages Remain in Play

U.S. markets showed weakness for a 4th-straight session while testing lower lows on worries the U.S. and China will be unable to reach a trade agreement before new tariffs go into effect on Friday. President Trump said he has an excellent alternative if no agreement is reached that will take in well over a $100 billion a year.

Unless an 11th hour deal is reached, fresh tariffs will likely be placed on the last $200 billion of imports from China from 10% to 25%. Although the major indexes rebounded in the 2nd-half of action, volatility stayed elevated after trading to a higher high but continues to hold the 20 level.

The Dow declined 0.5%, after trading to a morning low of 25,517. Prior support from late March at 26,600-26,400 was split but held with a close below the latter and the 200-day moving average being a continuing bearish development.

The Nasdaq fell 0.4% following the back-test to 7,796 in the first hour of action. Prior and upper support from early April at 7,825-7,775 and the 50-day moving average was breached but held on the close just above the 7,900 level.

The Russell 2000 was down 0.3% after tapping an intraday low of 1,546. Major and lower support at 1,565-1,550 was breached but held on the close above the former and the 50/200-day moving averages.

The S&P 500 also lost 0.3% following the morning pullback to 2,836. Prior and upper support at 2,850-2,825 and the 50-day moving average was breached with both levels holding into the closing bell.

Real Estate climbed 0.3% and was the only sector that showed strength.

Technology and Materials were the weakest sectors after giving back 0.8% and 0.7%, respectively. Consumer Discretionary was down 0.4%.


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ANALYST UPGRADES/DOWNGRADES

Atlassian (TEAM) upgraded to Buy from Neutral at Goldman Sachs
Ferrari (RACE) upgraded to Overweight from Equal Weight at Morgan Stanley
Protagonist Therapeutics (PTGX) upgraded to Buy from Hold at Stifel

American Eagle (AEO) downgraded to Neutral from Outperform at Wedbush Camping World (CWH) downgraded to Underperform from Neutral at BofA/Merrill
Intel (INTC) downgraded to Market Perform from Outperform at BMO Capital

EARNINGS 
Before the open (EST):
​Arbor Realty Trust (ABR), Buckeye Partners (BPL), Cars.com (CARS), Drive Shack (DS), Enbridge (ENB), GP Strategies (GPX), Hospitality Properties Trust (HPT), IMV (IMV), JD.com (JD), Marriott International (MAR), Pattern Energy Group (PEGI), RMR Group (RMR), Viacom (VIAB)

After the close(EST):
​China Biologic Products (CBPO), FutureFuel (FF), Lonestar Resources (LONE)

UPCOMING ECONOMIC NEWS
Friday's economic reports (EST): 
Consumer Price Index - 8:30am
Baker-Hughes Rig Count - 1:00pm
Treasury Budget - 2:00pm

METALS / OIL
Gold closed at $1,285.20 an ounce, up $3.80
Silver settled at $14.77 an ounce, down $0.09
Copper finished at $2.77 a pound, unchanged
Crude Oil was at $61.59 a barrel, up $0.19
Bitcoin Investment Trust (GBTC) ended at $8.23 up $0.39



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   Todd Mitchell


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