Bulls Are Back In Town, Again

U.S. markets opened slightly higher but were choppy throughout the first half of action before picking up strong momentum into the afternoon. The technical picture continues to improve as the broader market cleared and closed above major resistance levels for the first time since mid-April. Volatility continued to ease as it works its way back towards major levels of support and is showing signs of a possible market breakout to fresh all-time highs.

The Nasdaq surged 1% while tapping an intraday high of 7,344 and clearing the 7,300 level for the first time since mid-April. The Russell 2000 rallied 0.6% after making an intraday push to 1,598 and major resistance at 1,600. Both indexes are roughly 2% and 3%, respectively, above their 50-day moving averages.

The S&P 500 soared 1% following its run to 2,701 but missed holding the 2,700 level by just over 2 points. The Dow jumped 0.8% after reaching a peak of 24,586 to extend its winning streak to 5-straight sessions. Both indexes closed above their 50-day moving averages.

Arconic (ARNC) upgraded to Buy from Neutral at Longbow
Fluor (FLR) upgraded to Buy from Neutral at BofA/Merrill
T2 Biosystems (TTOO) upgraded to Buy from Neutral at Janney Capital
Crocs (CROX) downgraded to Hold from Buy at Stifel
Ironwood (IRWD) downgraded to Underweight from Equal Weight at Morgan Stanley
Papa John’s (PZZA) downgraded to Neutral from Buy at Longbow

Thursday’s Earnings:
Before the Open:
Blue Bird (BLBD), Choice Hotels (CHH), Duke Energy (DUK), Enbridge (ENB), Kelly Services (KELYA), Magna International (MGA), Nomad Foods (NOMD), Prestige Brands Holdings (PBH), Randgold Resources (GOLD), Smart Sand (SND), Telus (TU), Worldpay (WP)

After the Close:
Amdocs (DOX), Casa Systems (CASA), Dropbox (DBX), Globant (GLOB), HubSpot (HUBS), Joint (JYNT), Kulicke & Soffa (KLIC), News Corp (NWSA), Nvidia (NVDAWealth Strength IndexNVDA is Extremely Flat and trending Down). Pegasystems (PEGA), Revlon (REV), Symantec (SYMCWealth Strength IndexSYMC is Moderately Flat and trending Down), TiVo (TIVO), Yelp (YELP)

Thursday’s economic reports (EST):
Consumer Price Index – 8:30am
Jobless Claims – 8:30am
Bloomberg Consumer Comfort Index – 9:45am


Gold closed at $1,313.00 an ounce, down $0.70
Silver settled at $16.54 an ounce, up $0.07
Copper finished at $3.05 a pound, down $0.01
Crude Oil is at $71.24 a barrel, up $2.18
Bitcoin Investment Trust (GBTC) ended at $14.97 up $0.26

Make it a great day!

Todd Mitchell