Spider Small-Cap 600 ETF (NYSE: SLY) Up Four-Straight Seasions

The Spider Small-Cap 600 ETF (NYSE: SLY) extended its winning streak to four-straight sessions following the intraday push to $96.37. Prior and lower resistance from early March at $96-$96.50 was breached but held. A close above the latter would signal additional upside towards $97.50-$98.

Support is at $95-$94.50 followed by $93.50-$93.

RSI (relative strength indicator) is in an uptrend with lower resistance at 55-60 getting cleared and holding. A move above the latter would suggest additional strength towards 65-70 and levels from mid-March. Key support is at 50.

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Checking on Volatility

The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) snapped a three-session losing streak despite testing an opening low of 17.35. Near-term and upper support at 17.25-16.75 was challenged for the second-straight session. A close below the latter would indicate additional weakness towards 16-15.50.

The bounce to 18.40 afterwards cleared but failed to hold lower resistance at 18-18.50. A move above the latter would suggest a retest towards 19.50-20.

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GameStop Corp. (NYSE: GME) Zooms 51% on Short Squeeze

Shares of GameStop Corp. (NYSE: GME) zoomed 51% following a trading halt as short-sellers continue to get hammered. The short interest in GameStop reached 138% of the shares available for trading last week, and continues to drive the stock up for its massive short squeeze.

 
The company recently stated its holiday sales were down 3.1% but shares still rose a stunning 100% last week and were primed for a short squeeze, in which short sellers faced with high borrowing costs and accumulating losses are forced to buy shares to cover their bearish bet.
 

Diebold Nixdorf Inc. (NYSE, DBD) Surges 17% on Upgrade

Shares of Diebold Nixdorf Inc. (NYSE, DBD) surged nearly 17% after an analyst upgrade to Overweight from Neutral with a price target of $16, up from $10. The analyst said Diebold is a “deep value stock” and upgraded the shares ahead of a product ramp in the second half of 2021. Additionally, they see continued strong demand for self-checkout solutions and improving quality of earnings.
 

BlackBerry Ltd. (NYSE: BB)

Shares of BlackBerry Ltd. (NYSE: BB) rallied 8% after the company said it has settled the disputes over patent royalties against Facebook Inc. (Nasdaq: FB) for terms that weren’t disclosed. BlackBerry had sued Facebook in 2018 in a fight over messaging patents and was then countersued over patents for voice messaging technology.
 

NextOptions.com Index and Earnings Options Play List for 8/17/2020

Bulls Get Weekly Win Despite Friday’s Flat Action

The market lost ground on Friday following a flood of economic news and inaction from Congress on developments for a coronavirus relief package. No deal was announced on that front as lawmakers have broken for recess until Labor Day.

Despite the flat session, the major indexes posted another winning week and remain on track to test old and new higher highs after advancing their winning streaks to 3 and 4 weeks.

The Nasdaq tested a low of 10,972 before finishing at 11,019 (-0.2%). Current support at 11,000 was breached but held with a close below this level indicating additional downside weakness towards the 10,750 area.

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The Dow settled slightly higher despite tapping an intraday low of 27,759 while finishing 27,931 (+0.1%). Key support at 27,750 was challenged but held for the 3rd-straight session with a move below this level getting 27,250 back in focus.

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The S&P 500 traded to a low of 3,361 before ending at 3,372 (-0.02%). Near-term support at 3,350 was challenged but held with a move below this level suggesting further weakness towards the 3,300 area.

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The Russell 2000 closed at 1,577 (-0.1%) after tagging a morning low of 1,567. Crucial resistance at 1,575 was tripped but held with a close below this level suggesting a further pullback towards the 1,550 level. Below is a chart of the IWM.

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