Note: Our daily “S&P 500 Outlook, Forecast, and Trading plan for Monday, 11/26” will be posted around 8:30am EDT, Monday.

THE GIST (“THE WHAT”)

Taking a breather from last two days’ intense selling, the S&P 500 index bounced back on the back of a rebound in retail and technology stocks. Energy stocks led the index higher alongside a rise in oil prices, further supporting the day’s gains. Gains, however, remained capped amid ongoing concerns of a slowing global growth, peaked earnings and trade war threats. A mixed bag of economic data also kept investor confidence in check. 
Opening higher, the index maintained the gains throughout the session alongside a rebound in technology stocks; however, fading in the last half hour of the session to close off of session highs at 2649.93, up 8.04 points and gaining a decent 0.30% over previous session’s close. Seven out of the eleven primary sectors closed the session higher in today’s relief rally. Today’s price action tested our aggressive/intraday models’ lower bound level, closing only fractionally below the level indicated by our models to go short. Click here to read the full report.

THE DETAILS (The “How & Why”):

Oil prices rose higher on hopes of a production cut by the OPEC to curtail a global supply glut, despite a ninth straight weekly rise in the U.S. crude stockpiles reported by the EIA (Energy Information Administration). Energy sector led the index higher, rising 1.58%, led higher by a 5.09% rebound in Newfield Exploration Co. from its previous session’s sharp decline.
Consumer Discretionary, Communication Services and Technology sectors were the other strong performers of the session, up 1.00%, 1.00% and 0.62%, respectively, on the back of a rebound in tech stocks. While Apple Inc. and Netflix Inc. pared their day’s gains to close lower by 0.11% and 1.82%, Facebook Inc. and Alphabet Inc. rose 1.80% and 1.26% respectively. Autodesk Inc. was the best performer within the tech space, surging 9.74% on beating third-quarter earnings estimates and providing better-than-expected guidance.
Foot Locker Inc. sparked a relief rally in retail and departmental chain stocks, soaring 14.91% to be the best performer of the session after announcing stronger-than-expected quarterly results. Hanesbrands Inc. further lifted the broader Consumer Discretionary sector higher, rising a solid 6.58%.
Sentiments within the homebuilders stocks also improved after the existing-home sales data showed a first monthly increase in six months. This coupled with a decline in the U.S. mortgage rates suggested a brighter outlook for the industry. D.R. Horton Inc., Lowe’s Companies Inc. and PulteGroup Inc. rose 2.70%, 2.54% and 1.30%, respectively.
Industrials and Materials sectors were also modest gainers in today’s relief rally, up 0.65% and 0.84%. Transportation and Airlines stocks were strong performers. Copart Inc. was the top gainer within the Industrials space, rising 5.90% on beating quarterly earnings and revenue estimates.
Metals and commodities got a lift alongside a decline in the U.S. dollar index on the back of a rebound in euro currency after the European Commission rejected the 2019 budget proposal put forth by Italy. Freeport-McMoRan Inc. rose 4.87%, benefiting from a rise in copper prices and leading the Materials sector higher. On the other hand, defensive sectors traded lower on the back of a rise in risk appetite in today’s relief rally. Utilities, Consumer Stap
les and Health Care sectors were notable decliners of the session, down 1.48%, 0.83% and 0.51% respectively.