January Lows in Focus

The stock market was down for the third-straight session on Tuesday as Wall Street continues to monitor ongoing tensions between Russia and Ukraine. Putin authorized the deployment of Russian troops into two breakaway pro-Moscow regions in eastern Ukraine while Biden imposed sanctions that target the Russia-backed separatist regions.

As far as economic news, the consumer confidence index dipped to a reading of 110.5, the lowest since last September. Meanwhile, volatility tested key resistance for the second-time in six sessions but a level that held.

The Russell 2000 finished at 1,980 (-1.5%) with the afternoon low hitting 1,970. Key support at 1,975 was breached but held. Continued closes below this level keeps downside risk towards 1,950-1,925 in play. Below is a chart of the IWM.

The Dow tested a low of 33,364 while ending at 33,596 (-1.4%). Prior and upper support at 33,500-33,250 was tripped but held. A drop below the latter and the late January low at 33,150 would indicate a further back-test towards 33,000-32,750.

The Nasdaq settled at 13,381 (-1.2%) after tagging a second half low of 13,249. New and upper support at 13,350-13,200 was breached but held. A fade below the latter and the January 28th low at 13,236 would suggest ongoing weakness towards 13,150-13,000.

The S&P 500 ended at 4,304 (-1%) after tapping an intraday low of 4,267. Late January and upper support at 4,275-4,250 was violated but held. A close below the latter and last month’s low at 4,222 would signal a further pullback towards 4,200-4,175.

Balchem (BCPC) upgraded to buy from neutral at Sidoti & Co.

DraftKings (DKNG) downgraded to neutral from buy at Wells Fargo
Goodyear Tire (GT) downgraded to neutral from overweight at Jefferies

Before the open: Avista (AVA), BioCryst Pharmaceuticals (BCRX), Brink's (BCO), Entergy (ETR), Integra LifeSciences (IART), Jack in the Box (JACK), Koppers Holdings (KOP), Gibraltar Industries (ROCK), Lowe's Companies (LOW), Lumber Liquidators (LL), Molson Coors Beverage (TAP), New Gold (NGD), Overstock.com (OSTK), Photronics (PLAB), Stratasys (SSYS), Tupperware (TUP), Vipshop Holdings (VIPS), Wolverine World Wide (WWW)

After the close: Aaron's (AAN), Bath & Body Works (BBWI), Chesapeake Energy (CHK), Churchill Downs (CHDN), Ducommun (DCO), eBay (EBAY), Flowserve (FLS), Guardant Health (GH), Herbalife Nutrition (HLF), Hertz (HTZ), Imax (IMAX), Innovative Industrial Properties (IIPR), Kaiser Aluminum (KALU), Lemonade (LMND), Medifast (MED), NetApp (NTAP), Ormat Technologies (ORA), Pan American Silver (PAAS), Rent-A-Center (RCII), Sleep Number (SNBR), TransMedics Group (TMDX), Ultra Clean Holdings (UCTT), WM Technology (MAPS), Xperi Corporation (XPER)

MBA Mortgage Applications - 7:00am

Gold closed at $1,907.40 an ounce, up $7.60
Silver settled at $24.31 an ounce, up $0.32
Copper finished at $4.51 a pound, down $0.01
Crude Oil was at $92.27 a barrel up $0.61
Bitcoin Investment Trust (GBTC) ended at $25.93 down $1.37

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

 Todd Mitchell

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