Bears Return as Tech Tumbles

The stock market had its four-session winning streak snapped on Thursday, with all four of the major indexes pulling back following Meta Platforms (FB) weak outlook. Shares plummeted 26% while wiping out more than $200 billion from its market value.

Economic news was also a factor as initial claims for unemployment benefits dropped 23,000 to 238,000 versus forecasts for a print of 245,000. Volatility spiked 10% after closing higher for the second-straight session.

The Nasdaq settled at 13,878 (-3.7%) with the low hitting 13,851. Prior and upper support at 14,000-13,850 was breached and failed to hold. A fade below the latter would signal a further slide towards 13,750-13,600.

The S&P 500 traded down to 4,470 before ending at 4,477 (-2.4%). Near-term and upper support at 4,475-4,450 was tripped but held. A close below the latter and the 200-day moving average gets downside risk towards 4,425-4,400 back in play.

The Russell 2000 tagged a low of 1,988 while finishing at 1,991 (-1.9%). Key support at 2,000 failed to hold. Continued closes below this level would suggest ongoing weakness towards 1,975-1,950. Below is a chart of the IWM.

The Dow closed at 35,111 (-1.5%) after testing a late day low of 35,071. Upper support at 35,250-35,000 failed to hold. A drop below the latter and the 200-day moving average would indicate a retest towards 34,750-34,500.

ANALYST UPGRADES/DOWNGRADES

​Alnylam Pharmaceuticals (ALNY) upgraded to outperform from perform at Geggenheim

First Solar (FSLR) downgraded to neutral from buy at BofA Securities
Sprinklr (CXM) downgraded to sector weight from overweight at KeyBanc Capital

FRIDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: Adient (ADNT), Bristol-Myers Squibb (BMY), Cboe Global Markets (CBOE), Eaton (ETN), iRadimed (IRMD), Royal Caribbean Cruises (RCL), Sanofi (SNY), Virtus Investment Partners (VRTS)

After the close: None

FRIDAY'S ECONOMIC NEWS
Employment Report - 8:30am
Baker-Hughes Rig Count - 1:00pm

METALS/ OIL
Gold closed at $1,804.10 an ounce, down $6.20
Silver settled at $22.38 an ounce, down $0.33
Copper finished at $4.47 a pound, down $0.03
Crude Oil was at $90.87 a barrel up $3.15
Bitcoin Investment Trust (GBTC) ended at $24.63 down  $0.92

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

 Todd Mitchell

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