VIX Spikes Above 20

The stock market was mostly lower on Tuesday following comments from Treasury Secretary Janet Yellen who said interest rates might need to rise in order to prevent an economic overheating during the recovery out of the pandemic. Her comments caught Wall Street off-guard as rising rates would weigh on valuations of growth companies, while an easing of monetary policy could stall the market’s recent run towards record highs.
Tech underperformed after posting its worst day in over a month while the blue-chips rebounded to close slightly higher. Meanwhile, volatility spiked to its highest level since late March before holding a key level of resistance.
The Nasdaq tapped an intraday low of 13,485 while ending at 13,633 (-1.9%). Prior and upper support from early March at 13,500-13,350 and the 50-day moving average were breached but levels that held. A move below the latter would likely lead to additional weakness towards 13,250-13,100.
The Russell 2000 tested an opening low of 2,225 while closing at 2,248 (-1.3%). Mid-April and upper support at 2,250-2,225 was tripped and failed to hold. A close below the latter and the 50-day moving average would indicate additional weakness towards 2,200-2,175. Below is a chart of the IWM.
The S&P 500 settled at 4,164 (-0.7%) after trading a morning low of 4,128. Prior and upper support at 4,150-4,125 was breached but held. A drop below the latter would signal a further slide towards 4,100-4,075.
The Dow remains in a 12-session trading range after finishing at 34,133 (+0.1%) with the first half low reaching 33,765. Current and upper support at 34,000-33,750 was breached but held. A close below the latter would suggest weakness towards 33,250-33,000.

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Boeing (BA) upgraded to Market Perform from Underperform at Bernstein
Cirrus Logic (CRUS) upgraded to Buy from Hold at Needham
U.S. Steel (X) upgraded to Outperform from Underperform at Credit Suisse

Bank of America (BAC) downgraded to Neutral from Outperform at Baird
Dollar General (DG) downgraded to Sector Weight from Overweight at KeyBanc
Kroger (KR) downgraded to Sell from Neutral at Goldman Sachs

Before the open: Avista (AVA), BorgWarner (BWA), Clean Harbors (CLH), Dine Brands Global (DIN), Emerson Electric (EMR), Flex (FLEX), General Motors (GM), Horizon Pharma (HZNP), InMode (INMD), Lumber Liquidators (LL), New York Times (NYT), Owens & Minor (OMI), ParkOhio Holdings (PKOH), Radware (RDWR), SunPower (SPWR), Tupperware (TUP), United Therapeutics (UTHR), Waters (WAT)

After the close: Albemarle (ALB), CF Industries (CF), Etsy (ETSY), Fox (FOXA), GoDaddy (GDDY), Hub Group (HUBG), James River Group (JRVR), Kronos Worldwide (KRO), Lincoln National (LNC), Metlife (MET), NuVasive (NUVA), OraSure Technologies (OSUR), PayPal (PYPL), Rayonier (RYN), Sturm Ruger (RGR), Tanger Factory Outlet (SKT), Trimble (TRMB), Uber Technologies (UBER), Western Asset Mortgage Capital (WMC), Zynga (ZNGA)

ADP Employment Report - 8:15am
MBA Mortgage Applications -

Gold closed at $1,776.00 an ounce, down $15.80
Silver settled at $26.56 an ounce, down $0.40
Copper finished at $4.52 a pound, down $0.01
Crude Oil was at $65.69 a barrel, up $1.26
Bitcoin Investment Trust (GBTC) ended at $44.35 down $2.88

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

 Todd Mitchell

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