Geopolitical Concerns Fuel Selloff

The stock market tried to rebound on Friday but moved sharply lower in afternoon action following increased concerns over Russia taking military action against Ukraine sooner rather than later. The U.S. National Security said there were signs of Russian escalation at the Ukraine border and that it was possible that an invasion could take place during the Olympics.
 
The losses erased the weekly gains heading into the session as oil prices soared along with volatility. The pullback also pushed the major indexes into negative territory for the month, excluding the small-caps.
 
The Nasdaq tested a low of 13,733 before ending at 13,791 (-2.8%). Prior and upper support at 13,750-13,600 was breached but held. A fade below the latter would suggest additional weakness towards 13,500-13,350 with the January 28th low at 13,236. 

 

The S&P 500 settled at 4,418 (-1.9%) and back below its 200-day moving average after sinking to a low of 4,401. Fresh and upper support at 4,425-4,400 failed to hold. A drop below the latter would indicate a further fade towards 4,375-4,350. 

The Dow hit an afternoon low of 34,620 while finishing at 34,738 (-1.4%) and back below its 200-day moving average. Upper support at 34,750-34,500 failed to hold. A close below the latter would be an ongoing bearish development for additional weakness towards 34,250-34,000. 

The Russell 2000 closed at 2,030 (-1%) with the late day low hitting 2,016. New and upper support at 2,025-2,000 was breached but held. A dip below the latter would signal a retest towards 1,975-1,950. Below is a chart of the IWM. 

ANALYST UPGRADES/DOWNGRADES
CyberArk Software (CYBR) upgraded to buy from hold at Needham
Nautilus (NLS) upgraded to buy from hold at Craig-Hallum

Intevac (IVAC) downgraded to neutral from buy at Benchmark
Quantum (QMCO) downgraded to neutral from buy at B. Riley


MONDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: Alexanders (ALX), Garret Motion (GTX), Kelly Services (KELYA), Olink Holding (OLK), Roivant Sciences (ROIV), Scorpio Tankers (STNG), TreeHouse Foods (THS), Weber (WEBR)

After the close: Advance Auto Parts (AAP), Avis Budget Group (CAR), Continental Resources (CLR), Hawaiian Electric Industries (HE), iPower (IPW), Kite Realty Group Trust (KRG), Medpace Holdings (MEDP), Omnicell (OMCL), Otter Tail (OTTR), Primerica (PRI), Riley Exploration Permian (REPX), Spirit Realty Capital (SRC), TriNet Group (TNET), Vornado Realty Trust (VNO), Ziff Davis (ZD)

MONDAY'S ECONOMIC NEWS
None

METALS/ OIL
Gold closed at $1,842.10 an ounce, up $4.70
Silver settled at $23.37 an ounce, down $0.15
Copper finished at $4.51 a pound, down $0.15
Crude Oil was at $93.90 a barrel up $2.86
Bitcoin Investment Trust (GBTC) ended at $29.61 down $1.39

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

 Todd Mitchell

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