Bears Get Second-Straight Weekly Win

The stock market extended prior losses on Friday to close a second-straight week in negative territory as geopolitical tensions continued to weigh on sentiment. Fed speak was also in focus after Bank of New York President John Williams said rate hikes may not have to begin with as big a bang as some have suggested.

The Nasdaq tested a low of 13,465 before closing at 13,548 (-1.2%). Prior and upper support at 13,500-13,350 was breached but held. A drop below the latter would indicate additional weakness towards 13,250-13,100 with the January 28th low at 13,236.

The Russell 2000 settled at 2,009 (-0.9%) after sinking to an intraday low of 2,004. Key support at 2,000 was challenged but held. A move below this level reopens downside pressure towards 1,975-1,950. Below is a chart of the IWM.

The S&P 500 bottomed 4,327 while finishing at 4,348 (-0.7%). Prior and upper support at 4,350-4,325 failed to hold. A drop below the latter gets weakness towards 4,300-4,275 back in play.

The Dow ended at 34,079 (-0.7%) with the low hitting 33,976. Late January and upper support at 34,000-33,750 was tripped but held. A move below the latter would be an ongoing bearish signal with downside risk towards 33,500-33,250 with last month’s low at 33,150.

Sandstorm Gold (SAND) upgraded to outperform from sector perform at Raymond James
T2 Biosystems (TTOO) upgraded to buy from neutral at Alliance Global Partners

Altice USA (ATUS) downgraded to neutral from overweight at MoffettNathanson
Resonant (RESN) downgraded to hold from buy at Benchmark

Before the open: Armstrong World Industries (AWI), Cracker Barrel Old Country Store (CBRL), Dorman Products (DORM), Expeditors International (EXPD), Fluor (FLR), Home Depot (HD), Krispy Kreme (DNUT), LouisianaPacific (LPX), Macy’s (M), Nexstar Media Group (NXST), Standard Motor Products (SMP), TopBuild (BLD), Westlake Chemical (WLK)

After the close: American States Water (AWR), Blackbaud (BLKB), Camping World Holdings (CWH), Exact Sciences (EXAS), HealthEquity (HQY), Indie Semiconductor (INDI), Kratos Defense & Security Solutions (KTOS), Matador Resources (MTDR), Nordson (NDSN), Palo Alto Networks (PANW), Rackspace Technology (RXT), Toll Brothers (TOL), Virgin Galactic Holdings (SPCE), Warrior Met Coal (HCC)

S&P Corelogic Case-Shiller - 9:00am
FHFA House Price Index - 9:00am
PMI Manufacturing Index - 9:45am
Consumer Sentiment - 10:00am

Gold closed at $1,899.80 an ounce, down $2.20
Silver settled at $23.99 an ounce, up $0.11
Copper finished at $4.52 a pound, unchanged $0.15
Crude Oil was at $91.66 a barrel up $0.23
Bitcoin Investment Trust (GBTC) ended at $27.30 down $1.04

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

 Todd Mitchell

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