Whipsaw Action Continues as Bulls Push Prior Resistance

U.S. markets showed strength throughout Wednesday’s session as positive developments overseas and a ton of Fed speak here at home helped sentiment. The major indexes have remained in a longer-term trading range since the start of August but are once again pushing near-term and crucial resistance levels

The Nasdaq rallied 1.3% after reaching a late day high of 7,981. Near-term and lower resistance at 7,950-8,000 was reclaimed with a close above 8,050 and the 50-day moving average being a more bullish signal for additional strength towards 8,100-8,150.

The S&P 500 was up for the 4th time in 5 sessions after adding 1.1% and testing a high of 2,938. Current and lower resistance at 2,925-2,950 was cleared and held with a move above the latter and the 50-day moving average signaling additional strength towards 2,975-3,000.

The Dow rose 0.9% following the intraday push to 26,362. Near-term and low resistance at 26,400-26,600 held with a close above the latter and the 50-day moving average being a bullish signal for a run towards 26,750-27,000.

The Russell 2000 also gained 0.9% following the opening pop to 1,487. Current and lower resistance at 1,485-1,500 was challenged but held with a close above the latter signaling additional strength towards 1,515-1,530 and the 200/50-day moving average.

Communication Services and Technology led sector strength after rallying 2% and 1.7%, respectively, while Energy was up 1.4%. There was no sector weakness.

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Activision Blizzard (ATVI) upgraded to Outperform from Market Perform at BMO Capital
Campbell Soup (CPB) upgraded to Neutral from Underweight at Piper Jaffray
Stamps.com (STMP) upgraded to Neutral from Sell at Roth Capital

eBay (EBAY) downgraded to Neutral from Buy at UBS
Kimco Realty (KIM) downgraded to Sell from Neutral at Compass Point
WEC Energy (WEC) downgraded to Neutral from Buy at Guggenheim

Before the open: Bitauto Holdings (BITA), Ciena (CIEN), Donaldson Company (DCI), G-III Apparel (GIII), Kirkland’s (KIRK), Lands’ End (LE), Meredith (MDP), SecureWorks (SCWX), Shiloh Industries (SHLO), Signet Jewelers (SIG)
After the close: ABM Industries (ABM), CrowdStrike (CRWD), Culp (CULP), DocuSign (DOCU), Domo (DOMO), Guidewire Software (GWRE), Korn/ Ferry International (KFY), Lululemon (LULU), Medallia (MDLA), PagerDuty (PD), Quanex Building Products (NX), Science Applications (SAIC), Zoom Video (ZM), Zumiez (ZUMZ)

Thursday’s economic reports (EST): 
Challenger Job-Cut Report - 7:30am
ADP Employment Report - 8:15am
Jobless Claims - 8:30am
Productivity and Costs - 8:30am
PMI Services Index - 9:45am
ISM Non-Manufacturing Index - 10:00am
Factory Orders - 10:00am

Gold closed at $1,560.40 an ounce, up $4.50
Silver settled at $19.55 an ounce, up $0.31
Copper finished at $2.60 a pound, up $0.07
Crude Oil was at $55.98 a barrel, up $2.03
Bitcoin Investment Trust (GBTC) ended at $13.17, up $0.24

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

   Todd Mitchell

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