More Monday Blues

U.S. markets showed weakness for the 3rd-straight Monday as chatter over the trade war with China was back in the spotlight. President Trump again lowered hopes for a truce in the trade war with China, saying that he would be fine if trade talks scheduled for September do not happen.

The Dow was down 1.5% after testing an intraday low of 25,824. Prior and upper support at 26,000-25,750 was triggered and failed to hold with a close below the latter signaling additional weakness towards 25,500 and the 200-day moving average.

The Russell 2000 fell 1.2% following the fade to 1,491 ahead of the closing bell. Major and upper support at 1,500-1,490 was tripped and failed to hold with a close below the latter signaling a retest towards 1,480-1,470 and the monthly low of 1,472.

The Nasdaq dropped 1.2% after testing a first half low of 7,833. Near-term and upper support at 7,850-7,800 was violated but held with downside risk towards 7,700-7,650 on a close below the latter.

The S&P 500 also gave back 1.2% following the backtest to 2,873 and close back below the 2,900 level. Current and upper support at 2,875-2,850 was breached but held with a close below the latter getting 2,825-2,800 and the 200-day moving average in play.

There was no sector strength. Financials were the weakest sector after sinking 1.9% while Materials and Consumer Discretionary were lower by 1.6% and 1.5%, respectively.


Apple Hospitality REIT (APLE)
James Hardie (JHX) upgraded to Buy from Neutral at UBS
Zimmer Biomet (ZBH) upgraded to Buy from Hold at Argus

Adesto Technologies (IOTS) downgraded to Market Perform from Outperform at Northland
NetEase (NTES) downgraded to Neutral from Buy at Goldman Sachs
Occidental Petroleum (OXY) downgraded to In Line from Outperform at Evercore ISI

Before the open: ​Advance Auto Parts (AAP), Brinker International (EAT), Covetrus (CVET), eMagin (EMAN), Great Elm Capital (GECC), II-VI (IIVI), (JD), Lazydays Holdings (LAZY), Magic Software (MGIC), Parsons (PSN), Rubius Therapeutics (RUBY), Tecogen (TGEN), Wireless Telecom Group (WTT)

After the close: ​ ​Boxlight (BOXL), CDK Global (CDK), Dyadic International (DYAI), Fuel Tech (FTEK), Grocery Outlet (GO), Legacy Housing (LEGH), Myriad Genetics (MYGN), Purple Innovation (PRPL), RealReal (REAL), Tilray (TLRY), YY (YY)

Tuesday’s economic reports (EST): 
NFIB Small Business Optimism Index - 6:00am
CPI - 8:30am
Redbook - 8:55am

Gold closed at $1,517.20 an ounce, up $8.70
Silver settled at $17.07 an ounce, up $0.14
Copper finished at $2.58 a pound, down $0.01
Crude Oil was at $54.79 a barrel, up $0.52
Bitcoin Investment Trust (GBTC) ended at $14.60, down $0.28

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

   Todd Mitchell

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