Bears Make an Appearance

Recession

The market traded lower throughput much of Tuesday’s session on worries of increased coronavirus concerns and a pause or pullback in reopenings. Fresh worries the bounce in the economy could limit or even thwart additional stimulus recovery funds also weighed on sentiment.

The losses helped cool near-term and slightly overbought levels after the Nasdaq’s tagged its 25th all-time intraday high for 2020. The losses snapped 5-session winning streaks for the index and the S&P 500.

The Russell 2000 tapped a low of 1,414 while finishing at 1,416 (-1.9%). Crucial support at 1,415 held with a close below this level suggesting additional downside weakness towards the 1,400 level.

The Dow traded to a late day low of 25,866 before settling at 25,890 (-1.5%) while closing back below its 200-day moving average. Key support at 26,000 failed to hold with continued closes below this level keeping risk towards 25,500 in play.

The S&P 500 bottomed at 3,142 before going out at 3,145 (-1.1%). Near-term support at 3,125 is back in focus with a move below this level signaling additional downside risk towards the 3,100 area.

The Nasdaq traded to an all-time and intraday high of 10,518 before closing lower at 10,343 (-0.9%). Fresh support at 10,300 held on the late day backtest o 10,337 with a close below this level signaling a possible near-term top and risk towards 10,200.

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ANALYST UPGRADES/DOWNGRADES

Acadia (ACAD) upgraded to Buy from Hold at Stifel
Trex Company (TREX) upgraded to Outperform from Neutral at Baird
Valmont (VMI) upgraded to Buy from Hold at Stifel

Dominion (D) was downgraded to Neutral from Outperform at Credit Suisse
Kinder Morgan (KMI) downgraded to Sell from Neutral at Goldman Sachs
Yeti (YETI) downgraded to Neutral from Buy at Goldman Sachs

WEDNESDAY'S EARNINGS ANNOUNCEMENTS
Before the open: MSC Industrial Direct (MSM), Northern Technologies International (NTIC), Simply Good Foods (SMPL)
After the close: Bed Bath & Beyond (BBBY), Exfo (EXFO), Saratoga Investment (SAR)

WEDNESDAY'S ECONOMIC NEWS
MBA Mortgage Applications - 7:00am
Consumer Credit - 3:00pm

METALS/ OIL
Gold closed at $1,809.90  an ounce, up $16.40
Silver settled at $18.70 an ounce, up $012
Copper finished at $2.80 a pound, up $0.03
Crude Oil was at $40.45 a barrel, 
down $0.26
Bitcoin Investment Trust (GBTC) ended at $9.75 down $0.19


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


   Todd Mitchell


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