Bears Return as Coronavirus Cases Surge

The market traded lower throughout Wednesday’s action following a resurgence in several states concerning coronavirus cases, including Florida and Texas, and could threaten the economy's recovery. The governors of New York, New Jersey and Connecticut told travelers that are arriving from states with high rates of coronavirus to self-quarantine for 14 days.

In addition to the troubling coronavirus news, the IMF weighed on sentiment with its sobering forecast for a decline in global economic growth. The losses pushed the major indexes back towards near-term support levels with volatility spiking to its highest level in 7 sessions.

The Russell 2000 tapped a midday low of 1,374 before settling at 1,389 (-3.5%). Crucial support at 1,375 was challenged but held with a close below this level signaling additional downside risk towards 1,350.

The Dow closed at 25,445 (-2.7%) with the intraday low kissing 25,296. Key support at 25,000 was challenged but held with a close below this level keeping risk towards 24,500 in focus.

The S&P 500 tested a low of 3,032 before settling at 3,050 (-2.6%). Crucial support at 3,025 was breached but held with a move below this level signaling additional downside risk towards the 3,000 level.

The Nasdaq closed at 9,909 (-2.1%) with the morning low reaching 9,842. Key support at 9,850 was breached but held with a close below this level signaling weakness towards the 9,750 level.

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Aurora Cannabis (ACB) upgraded to Hold from Sell at Stifel
Clear Channel Outdoor (CCO) upgraded to Buy from Neutral at Citi
Morgan Stanley (MS) upgraded to Buy from Neutral at DA Davidson

Cheesecake Factory (CAKE) downgraded to Underweight from Neutral at JPMorgan
PayPal (PYPL) downgraded to Neutral from Buy at BTIG
Royal Caribbean (RCL) downgraded to Equal Weight from Overweight at Barclays

Before the open: Accenture (ACN), Better Choice Company (BTTR), Darden Restaurants (DRI), Enerpac Tool Group (EPAC), FactSet Research Systems (FDS), GMS (GMS), McCormick & Company (MKC), Rite Aid (RAD), Stratus Properties (STRS), Unique Fabricating (UFAB), Worthington Industries (WOR)
After the close: Aethlon Medical (AEMD), CalAmp (CAMP), Nike (NKE), Progress Software (PRGS), Seanergy Maritime Holdings (SHIP), Synnex (SNX)

GDP - 8:30am
Durable Goods Orders - 8:30am
Jobless Claims - 8:30am
Kansas City Fed Manufacturing Index - 11:00am

Gold closed at $1,775.10  an ounce, down $6.90
Silver settled at $17.67 an ounce, down $0.39
Copper finished at $2.65  a pound, down $0.01
Crude Oil was at $38.13 a barrel,
 down $2.02
Bitcoin Investment Trust (GBTC) ended at $10.20 down $0.74

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

   Todd Mitchell

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