Near-Term Support Holds


U.S. markets opened lower and showed weakness throughout the session as Wall Street returned from the holiday weekend. Tensions over trade remain in the forefront as deal talks will restart with Canada on Wednesday and big tariffs against China are still looming.

The Russell 2000 fell 0.4% after testing a low of 1,722. Near-term support at 1,720 held with a move below this level likely leading to a retest of 1,700.

The Nasdaq declined 0.2% while trading to an intraday low of 8,042. Support at 8,050-8,000 held with a close below the latter being a slightly bearish development.

The S&P 500 slipped 0.2% following the midday pullback to 2,885. Support at 2,880-2,875 held with a close below the latter signaling additional weakness.

The Dow was down a 3rd-straight session after giving back 0.1%. Upper support at 25,800-25,600 held with the morning low reaching 25,805.

Utilities and Financials rose 0.4% to led sector strength. Consumer Discretionary gained 0.2%.

Consumer Services tumbled 1.4% to lead sector weakness for a 2nd-straight session. Real Estate stumbled 1% while Health Care was down 0.9%.


Albemarle (ALB) upgraded to Buy from Hold at SunTrust
UPS (UPS) upgraded to Strong Buy from Market Perform at Raymond James
Qualcomm (QCOMWealth Strength IndexQCOM is Moderately Flat and trending Up) upgraded to Outperform from Neutral at Macquarie
Dollar Tree (DLTRWealth Strength IndexDLTR is Extremely Flat and trending Up) downgraded to Outperform from Top Pick at RBC Capital
Seagate (STXWealth Strength IndexSTX is Extremely Up and trending Up) downgraded to Underperform from In Line at Evercore ISI
Verizon (VZ) downgraded to Equal Weight from Overweight at Barclays


Wednesday’s earnings announcements (EST): 

Before the open: Christopher & Banks (CBK), Duluth Holdings (DLTH), General Finance (GFN), HD Supply Holdings (HDS), Knot Offshore Partners (KNOP), SecureWorks (SCWX), Vera Bradley (VRA)
After the close: AeroVironment (AVAV), International (CTRPWealth Strength IndexCTRP is Moderately Down and trending Down), DocuSign (DOCU), Guidewire Software (GWRE), Ollie’s Bargain Outlet (OLLI), Rev Group (REVG), SeaChange International (SEAC), Verint Systems (VRNT), 

Wednesday’s economic reports (EST): 

​MBA Mortgage Applications – 7:00am
International Trade in Goods – 8:30am
Redbook – 8:55am


Gold closed at $1,199.10 an ounce, down $7.60

Silver settled at $14.06 an ounce, down $0.38

Copper finished at $2.60 a pound, down $0.07

Crude Oil is at $69.25 barrel, down $0.55

Bitcoin Investment Trust (GBTC) ended at $9.50 unchanged

Make it a great day!

   Todd Mitchell