Bulls Looking Tired On Mixed Close

U.S. markets settled mixed on Thursday as corporate earnings dictated the action for the major indexes. Tech helped the Nasdaq to another fresh all-time high while the Dow was hurt by some disappointing numbers from the Transports and Industrials sectors.

Meanwhile, the small-caps struggled after trading in negative territory throughout the session. Volatility spiked to its 2nd-highest level of the month but held major resistance while testing lower lows afterwards.

The Nasdaq gained 0.2% following the opening pop to 8,151 and fresh all-time high. Lower resistance at 8,150-8,200 was cleared but held with breakout potential towards 8,250-8,400 on a move above the latter.

The Russell 2000 fell 0.8% after testing an intraday low of 1,565. Prior and upper support at 1,565-1,550 held with a close below the latter and the 50/200-day moving averages being a bearish signal.

The Dow stumbled 0.5% after testing a morning low of 26,310. Upper support at 26,500-26,250 was breached and failed to hold with a close below the latter getting 26,000 and the 50-day moving average in play.

The S&P 500 dipped a point, or 0.04%, despite the intraday push to 2,933. Lower resistance and the all-time high at 2,940 held for the 3rd-straight session with a close above 2,950 signaling additional momentum.

Communications Services and Healthcare paced sectors after rising 1.1% and 1%, respectively. Utilities were up 0.4%.

Industrials tanked 2% to lead sector weakness. Materials sank 1.3% and Consumer Staples were down 0.6%.


American Express (AXP) upgraded to Overweight from Equal Weight at Morgan Stanley
Facebook (FBWealth Strength IndexFB is Moderately Up and trending Up) upgraded to Buy from Neutral at UBS
Sirius XM (SIRIWealth Strength IndexSIRI is Moderately Up and trending Up) upgraded to Buy from Hold at Pivotal Research

Spirit Airlines (SAVE) downgraded to Neutral from Buy at BofA/Merrill
Tesla (TSLAWealth Strength IndexTSLA is Moderately Flat and trending Up) downgraded to Neutral from Outperform at Wedbush
Xilinx (XLNXWealth Strength IndexXLNX is Flat and trending Down) downgraded to Hold from Buy at Needham and to Neutral from Buy at Goldman Sachs

Before the open (EST):
​American Airlines (AALWealth Strength IndexAAL is Flat and trending Up), AutoNation (AN), Bloomin’ Brands (BLMN), Chevron (CVX), Exxon Mobile (XOM), Franklin Resources (BEN), Goodyear Tire & Rubber (GT), Imax (IMAX), LendingTree (TREE), Piper Jaffray (PJC), Sony (SNE), Weyerhaeuser (WY)

After the close(EST):

Friday’s economic reports (EST): 
GDP – 8:30am
Consumer Sentiment – 10:00am
Baker-Hughes Rig Count – 1:00pm

Gold closed at $1,279.70 an ounce, up $0.30
Silver settled at $14.88 an ounce, down $0.04
Copper finished at $2.86 a pound, down $0.05
Crude Oil was at $65.05 a barrel, down $0.71
Bitcoin Investment Trust (GBTC) ended at $6.98 up $0.19

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

   Todd Mitchell