Nasdaq Recovers 50-Day Moving Average

The stock market was in rally mood from the start of Wednesday’s open and into the Fed’s latest meeting minutes that came later in the afternoon. The Fed signaled it would reduce its monthly bond purchases “soon” while adding interest rate increases may follow more quickly than expected.

Half of the 18 central bank policymakers projected borrowing costs will need to rise next year. However, policymakers kept a hawkish stance after saying inflation could rise above 4% this year, more than double its forecast rate, and is positioning itself to act against it.

The Russell 2000 settled at 2,218 (+1.5%) with the intraday high hitting 2,234. Key resistance at 2,225 and the 50-day moving average were cleared but held. Continued closes above these levels would signal additional upside towards 2,250-2,275. 

The Nasdaq closed at 14,896 (+1%) after reaching a peak of 14,950. Prior and lower resistance at 14,850-15,000 the 50-day moving average were cleared and held. A pop above the latter would indicate ongoing strength towards 15,100-15,250.

The Dow tested an afternoon high of 34,440 before ending at 34,258 (+1%). Near-term and lower resistance at 34,250-34,500 was reclaimed. A move above the latter would suggest further gains towards 34,750-35,000 the 50-day moving average.

The S&P 500 finished at 4,395 (+1%) with the second half peak kissing 4,416. Key resistance at 4,400 was tripped but held. A close above this level would likely lead to a retest towards 4,425-4,450 the 50-day moving average.

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Ambarella (AMBA) upgraded to Overweight from Sector Weight at KeyBanc
Peoples Bancorp (PEBO) upgraded to Overweight from Neutral at Piper Sandler
Simon Property (SPG) upgraded to Buy from Hold at Argus

DXC Technology (DXC) downgraded to Neutral from Buy at MoffettNathanson
FedEx (FDX) downgraded to Market Perform from Outperform at Raymond James
Vir Biotechnology (VIR) downgraded to Neutral from Buy at Goldman Sachs

Before the open: Accenture (ACN), Darden Restaurants (DRI), Dynatronics (DYNT), Rite Aid (RAD)

After the close: Applied Genetic Technologies (AGTC), Costco Wholesale (COST), Nike (NKE), Progress Software (PRGS), Research Solutions (RSSS), Scholastic (SCHL), Group (TCOM), Vail Resorts (MTN)

​Jobless Claims - 8:30am
PMI Manufacturing Index - 9:45am
Leading Indicators - 10:00am

Gold closed at $1,778.80 an ounce, up $0.60
Silver settled at $22.91  an ounce, up $0.30
Copper finished at $4.25 a pound, up $0.12
Crude Oil was at $70.00 a barrel,  down $0.51
Bitcoin Investment Trust (GBTC) ended at $34.88 up $1.70

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

 Todd Mitchell

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