Bulls Bounce Back

The stock market regained some of its momentum on Friday as Amazon’s (AMZN) positive quarter highlighted a solid round of earnings. Snap (SNAP) and Pinterest (PINS) also reported better-than-expected numbers to help Tech recover much of its losses from the previous session.

The blue-chips were slightly down but all four of the major indexes posted solid gains for the week. Meanwhile, volatility fell for the first time in three sessions but remains at slightly elevated levels.

The Nasdaq went out at 14,098 (+1.6%) with the second half peak hitting 14,222. Prior and lower resistance at 14,150-14,300 was cleared but held. A move above the latter would suggest another run towards 14,400-14,550.

The Russell 2000 traded to a late day high of 2,016 while ending at 2,002 (+0.6%). Key resistance at 2,000 was cleared and held. Continued closes above this level would be a bullish development for a return trip towards 2,025-2,050. Below is a chart of the IWM.

The S&P 500 ended at 4,500 (+0.5%) after tapping an afternoon high of 4,539. Near-term and lower resistance at 4,525-4,550 was tripped but held. A pop above the latter would suggest further strength towards 4,575-4,600.

The Dow closed at 35,111 (-0.06%) was down for the second-straight session with the low hitting 34,799. Upper support at 35,000-34,750 and the 200-day moving average were breached but levels that held. A drop below the latter would indicate a further fade towards 34,500-34,250.

ANALYST UPGRADES/DOWNGRADES

BJ's Wholesale (BJ) upgraded to buy from hold at Deutsche Bank
Jounce Therapeutics upgraded to outperform from market perform at Cowan & Co.

Biogen (BIIB) downgraded to market perform from outperform at BMO Capital
CMC Materials (CCMP) downgraded to neutral from buy at Mizuho
Mesa Air (MESA) downgraded to market perform from outperform at Raymond James

MONDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: Cerence (CRNC), Daikin Industries (DKILY), Energizer Holdings (ENR), Hasbro (HAS), Loews (L), ON Semiconductor (ON), Tyson Foods (TSN), Zimmer Biomet Holdings (ZBH)

After the close: Amgen (AMGN), Chegg (CHGG), Danaos (DAC), Graham (GHM), Kennametal (KMT), Leggett & Platt (LEG), Nuance Communications (NUAN), Principal Financial Group (PFG), Rambus (RMBS), SelectQuote (SLQT), Take-Two Interactive Software (TTWO), Varonis Systems (VRNS)

MONDAY'S ECONOMIC NEWS
Consumer Credit - 3:00pm

METALS/ OIL
Gold closed at $1,807.80 an ounce, up $3.70
Silver settled at $22.48 an ounce, up $0.10
Copper finished at $4.49 a pound, up $0.02
Crude Oil was at $91.92 a barrel up $1.05
Bitcoin Investment Trust (GBTC) ended at $27.96 up $3.33

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

 Todd Mitchell

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