Dow Recovers 50-Day Moving Average

The stock market showed continued strength on Wednesday with Tech stocks leading the way following upbeat earnings reports and a pause in rising interest rates. Specifically, the benchmark 10-year U.S. Treasury yield slipped from multi-year highs reached in the previous session, helping sentiment.

The Nasdaq finished on the session high of 14,490 (+2.1%). Key resistance at 14,500 was challenged but held. Continued closes above this level would signal further strength towards 14,600-14,750 and the 200-day moving average.

The Russell 2000 also closed at its peak of 2,083 (+1.9%) to extend its winning streak to four-straight session. Fresh and lower resistance at 2,075-2,100 was cleared and held. A move above the latter would be a bullish development for a run towards 2,125-2,150 and the 50-day moving average. Below is a chart of the IWM. 

The S&P 500 traded to a high of 4,590 while settling at 4,587 (+1.5%). Prior and lower resistance at 4,575-4,600 was reclaimed. A close above the latter and the 50-day moving average would suggest additional upside towards 4,625-4,650. 

The Dow ended at 35,768 (+0.9%) and back above its 50-day moving average with the afternoon peak reaching 35,824. New and lower resistance at 35,750-36,000 was cleared and held. A move above the latter would indicate additional upside towards 36,250-36,500. 

Advanced Micro Devices (AMD) upgraded to buy from outperform at Daiwa Capital Markets
Tenet Healthcare (THC) upgraded to buy from hold at Truist

Big Lots (BIG) downgraded to underweight from neutral at J.P. Morgan
Colfax (CFX) downgraded to neutral from buy at Seaport Research

Before the open: AstraZeneca (AZN), Canada Goose Holdings (GOOS), Coca-Cola (KO), Datadog (DDOG), Global Payments (GPN), Huntington Ingalls Industries (HII), Insight Enterprises (NSIT), Kellogg (K), Lincoln Electric Holdings (LECO), Moody's (MCO), Peabody Energy (BTU), RBC Bearings (ROLL), Sonoco (SON), Tapestry (TPR), Twitter (TWTR), Watsco (WSO), Zebra Technologies (ZBRA)

After the close: Aurora Cannabis (ACB), Brighthouse Financial (BHF), Chemours (CC), DexCom (DXCM), Expedia (EXPE), Flowers Foods (FLO), GoDaddy (GDDY), HubSpot (HUBS), Illumina (ILNM), Momentive (MNTV). Pixelworks (PXLW), Republic Services (RSG), Terex (TEX), VeriSign (VRSN), Western Union (WU), Yelp (YELP), Zendesk (ZEN)

Initial Jobless Claims - 8:30am
Consumer Price Index - 8:30am
Federal Budget Balance - 2:00pm

Gold closed at $1,836.60 an ounce, up $8.70
Silver settled at $23.34 an ounce, up $0.14
Copper finished at $4.60 a pound, up $0.14
Crude Oil was at $90.03 a barrel up $0.25
Bitcoin Investment Trust (GBTC) ended at $32.08 up $0.73

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

 Todd Mitchell

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