The Spider Small-Cap 600 ETF (SLY) extended its losing streak to 3-straight sessions after trading to an intraday low of $51.08 while closing back below its 50-day moving average. Near-term and upper support at $51.50-$51 was breached but held. A close below the latter would be an ongoing bearish signal with additional pullback potential towards $50.50-$50.

Lowered resistance is at $52.50-$53 with additional hurdles at $54-$54.50.

RSI remains in a downtrend with upper support at 50-45 holding. A move below the latter would be a bearish signal for additional weakness towards 40-35 and early April levels. Resistance is at 55-60.

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Before the open: AMC Networks (AMCX), Black Knight (BKI), Dominion Energy (D), Fiat Chrysler Automobile (FCAU), Gladstone Capital (GLAD), Haemonetics (HAE), Incyte (INCY), Jones Lang LaSalle (JLL), L3Harris Technologies (LHX), LendingTree (TREE), MGM Growth Properties (MGP), Newmont Mining (NEM), Premier (PINC), Sealed Air (SEE), TopBuild (BLD), US Foods Holding (USFD), Wayfair (W)

After the close: Activision Blizzard (ATVI), Beyond Meat (BYND), Cheesecake Factory (CAKE), Devon Energy (DVN), Electronic Arts (EA), FMC (FMC), Hackett Group (HCKT), Inogen (INGN), Jazz Pharmaceuticals (JAZZ), L.B. Foster (FSTR), Match Group (MTCH), Nautilus (NLS), Otter Tail (OTTR), Pinterest (PINS), Planet Fitness (PLNT), Retail Properties of America (RPAI), SBA Communications (SBAC), T2 Biosystems (TTOO), Vapotherm (VAPO), Walt Disney (DIS), Western Union (WU), Zogenix (ZGNS)

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Bulls Extend Winning Streak to 3-Straight

5:00pm (EST)

The market was higher for the 3rd-straight session on Wednesday as private sector employment soared with additional better-than-expected economic news keeping the bullish sentiment intact. The reported number of coronavirus cases of the deadly disease continues to rise in China but didn’t dampen enthusiasm as the outbreak is still mainly contained to that country.

More importantly, there are reports of some success in treating the virus using existing drugs along with U.K. scientists reporting a significant breakthrough on a vaccine. The major indexes look poised for higher highs but volatility remains elevated and the pullback in Tech off the high was a slight concern going forward.

The Dow soared 1.7% with the late session high tapping 29,308. Prior and lower resistance at 29,000-29,200 was cleared and held with a move above the all-time high at 27,373 signaling additional strength towards 29,400-29,600.

The Russell 2000 rose 1.5% after testing a late day high of 1,682. Near-term and lower resistance at 1,670-1,685 was cleared and held with a close above the latter getting the 1,700 level back in focus.

The S&P 500 surged 1.1% following the afternoon run to 3,337 while missing a new all-time high by a quarter-point. Current resistance at 3,300-3,325 was cleared and held with upside potential towards 3,350-3,375 on continued closes above the 3,335 level.

The Nasdaq was up 0.4% after trading to a 2nd-straight all-time high of 9,574. Fresh and lower resistance at 9,550-9,600 was cleared but held with a move above the latter signaling momentum towards 9,650-9,700.

Energy led sector strength after zooming 3.8% while Healthcare and Financials rallied 2%. Real Estate was the only sector laggard after slipping 0.1%.

Virgin Galactic (SPCE, $17.21 down $1.91)

SPCE April 15 calls (SPCE200417C00015000, $4.80, down $0.70)

Entry Price: $0.50 (1/7/2019)

Exit Target: $7.50 (closed half at $2.50 on 1/15/2020)

Return: 650%

Stop Target: $5 (Stop Limit)

Action: The Stop Limit at $5 tripped on Friday’s continued weakness in the stock.

The iShares Russell 1000 (IWF) snapped a 2-session losing streak with the late day peak reaching $176.06. Near-term and lower resistance at $176-$176.50 was cleared but held. A close above the latter would be a bullish signal for a retest towards $177.50-$178 and fresh record highs.

Current support is at $175-$174.50. A close below the $174 level would signal a near-term top with additional risk towards $173-$172.50.

RSI is trying to level out after holding support at 70. A close below this level would signal additional weakness towards 65-60. Resistance is at 75-80 with the latter representing overbought conditions from last week and January 2018.

The S&P 500 Volatility Index ($VIX) fell for the first time in 3 sessions despite tagging a midday high of 15.39. Upper resistance at 14.50-15 and the 200-day moving average was breached but held for the 2nd-straight session.

The fade to 13.75 afterwards and close below prior and upper support at 14-13.50 was a healthy signal volatility is easing and may have peaked. A close back below the 13 level and the 50-day moving average before week’s end would be a more bullish development and signal a possible return to all-time highs for the market.