Small-Caps Breaking Out

The stock market was up for the second-straight session following merger-and-acquisition news and ongoing, but shaky, stimulus talks. Morgan Stanley (MS) agreed to buy Eaton Vance (EV) for $56.50 in a deal valued at $7 billion.

Meanwhile, the back-and-forth battle between President Trump and Speaker Nancy Pelosi continued with both trying to negotiate a deal despite the heightened rhetoric. Volatility tagged its lowest level since mid-September but once again failed to clear and hold a key level of support.

The Russell 2000 finished at 1,628 (+1.1%) with the session high at 1,630. Prior and lower resistance from early February at 1,625-1,650 was breached and held. A close above the latter would be an ongoing bullish signal for a run towards 1,660-1,675.

The S&P 500 settled at 3,447 (+0.8%) following the intraday run to 3,446. Lower resistance from early September at 3,425-3,450 was recovered. A move above the latter would suggest a retest towards 3,475-3,500.

The Nasdaq reached a late day peak of 11,448 before ending at 11,420 (+0.5%). Fresh and lower resistance at 11,400-11,500 was cleared and held. A pop above the latter would indicate ongoing strength towards the 11,500-11,600 area.

The Dow tested a morning peak of 28,459 while closing at 28,425 (+0.4%). Current and lower resistance at 28,500-28,750 was challenged but held. A close above the latter would indicate additional strength towards 29,000-29,250.

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Dana (DAN) upgraded to Outperform from Sector Perform at RBC Capital
Paychex (PAYX) upgraded to Buy from Neutral at Citi
Tesla (TSLA) upgraded to Buy from Neutral at New Street

Citi (C) downgraded to Neutral from Overweight at JPMorgan
Integra LifeSciences (IART) downgraded to Underweight from Neutral at JPMorgan
TransMedics (TMDX) downgraded to Neutral from Overweight at JPMorgan

Before the open: ​None
After the close: None

Wholesale Trade - 10:00am
Baker-Hughes Rig Count - 1:00pm

Gold closed at $1895.10 an ounce, up $4.30
Silver settled at $23.88 an ounce,  down $0.02
Copper finished at $3.04 a pound, up $0.01
Crude Oil was at $41.27 a barrel, up $1.23

Bitcoin Investment Trust (GBTC) ended at 11.86, up $0.89

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

   Todd Mitchell

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