Late Day Selling Pressure Weighs on Small-Caps, Tech

The stock market finished mixed on Friday after spending much of the session pushing prior resistance levels. Better-than-expected economic news and fresh developments on the release of a coronavirus cure by the end of November helped bullish sentiment on the open before late day selling pressure weighed on the small-caps and the Tech sector.

The Dow tested a morning peak of 28,842 while closing at 28,606 (+0.4%). Current and lower resistance at 28,750-29,000 was cleared but held. A close above the latter would indicate additional strength towards 29,250-29,500 and levels from February.

The S&P 500 settled at 3,483 (+0.01%) following the intraday run to 3,515. Prior and lower resistance at 3,500-3,525 was breached but held. A move above the latter would suggest a retest towards 3,550-3,575 with the all-time high from September at 3,588.

The Nasdaq faded to a late day low of 11,648 before closing at 11,671 (-0.4%). Near-term and upper support at 11,700-11,600 failed to hold. A close below the latter would indicate a further backtest towards 11,500-11,400.

The Russell 2000 finished on its session low of 1,633 (-0.3%). Current and upper support at 1,635-1,620 was tripped and failed to hold. A move below the latter would signal further weakness towards 1,615-1,600.

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Caterpillar (CAT) upgraded to Overweight from Equal Weight at Wells Fargo
Costco (COST) assumed with a Buy from Hold at Jefferies
Werner (WERN) upgraded to Overweight from Equal Weight at Barclays

Clorox (CLX) downgraded to Neutral from Overweight at JPMorgan
Denali Therapeutics (DNLI) downgraded to Neutral from Buy at BTIG
WPX Energy (WPX) downgraded to Sector Perform from Outperform at RBC Capital


Before the open: Guaranty Bancshares (GNTY), Halliburton (HAL), Lennox International (LII), Old National Bancorp (ONB), Simmons First National (SFNC)

After the close: Agree Realty (ADC), BancorpSouth (BXS), Crown Holdings (CCK), Enterprise Financial Services (EFSC), Hexcel (HXL), International Business Machines (IBM), Logitech International (LOGI), PPG Industries (PPG), Steel Dynamics (STLD), Triumph Bancorp (TBK), Washington Trust Bancorp (WASH), Zions Bancorporation (ZION)

NAHB Housing Market Index - 10:00am

Gold closed at $1,906.40 an ounce,  down $2.50
Silver settled at $24.41 an ounce,  up $0.19
Copper finished at $3.07 a pound, down $0.02
Crude Oil was at $40.78 a barrel, 
down $0.14
Bitcoin Investment Trust (GBTC) ended at $12.43 down $0.02

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

   Todd Mitchell

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