After Monday’s big rally in tech, the Nasdaq has lost its bid. The Nasdaq futures contract hit highs to start the week at 13150, but since selling started on Tuesday, we are off over 3% from those highs. The bulls are struggling again this morning, as the Nasdaq futures are trading around the unchanged mark, after overnight trading saw lows of 12750.
The bears are licking their chops, as the weakness in the Nasdaq might signify a larger down move. The 200-day in the Nasdaq futures contract is just below the 12000 mark and the bears will likely try to press that level.
Crude oil is trading 1.5% lower after yesterday’s big rally. The Suez Canal is still clogged as the massive cargo ship remains stuck sideways, blocking all traffic. Oil prices did see some relief on that news, but the COVID lockdowns in Europe are bringing concern on the demand side.
Jobless claims will be out this morning, with estimates coming in at 730k.
S&P Futures Trading Levels
The S&P futures currently sits at 3880, just above the overnight lows.
Support levels for the day will be 3863 and 3844.
Upside resistance is 3897 and 3917.
The current S&P trading environment is sideways and holding support. However, the Nasdaq is trending lower and below the 21 and 50-day moving averages.
Three Stocks to Watch
RH- Earnings out last night, with a beat on the top and bottom line. The company saw a 6% EPS beat and guided FY21 revenue growth up 15-20%
The stock responded well to the numbers and its currently trading up over 8% in the premarket. The recent market sell-off saw the stock fall over 20%, but current levels have RH close to all-time highs.
Seeing a couple upgrades already this morning, with Telsey Advisory taking theirs from $600 to $650.
DRI- Big beat out from Darden this morning, with the company seeing Q3 at $0.98 v the $0.71 expected. Revenue came in above expectations and the company announced a $500M share buyback. Darden also raised its dividend and guided well Q4 above previous expectations.
The stock is trading over 4% higher in the premarket and only 10 points shy of all-time highs.
GBTC– Bitcoin is seeing some weakness as the dollar rallies. A break of the $50-52k level threatens the bulls with a move down to the 50-day moving average around $46k.The next support level below that important MA is $37k
GBTC would see selling pressure if that down move accelerated. For those Bitcoin fans, look for the $35 level in GBTC to offer some support
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