US OPEN: Wall Street mixed at the beginning of the week

• US indices launched today's cash trading higher, however bears regained control
• Coinbase (COIN.US) stock fell sharply after Goldman downgrade 
• Chewy (CHWY.US) stock surges after analysts upgrade

Major Wall Street indices launched today's session 0.5% higher, attempting to extend last week's gains despite the fact that recent macro readings, including global PMIs and consumer confidence, pointed to slower economic activity. It seems that weaker data sparked speculation that FED may reduce the pace of interest rates hike. Nevertheless, sellers quickly regained control and major bourses erased early gains. Dow Jones trades 0.14% lower, while S&P500 and Nasdaq fell 0.40% and 0.80% respectively. This week will host some interesting events, including a panel discussion with heads of 3 major central banks (Fed, ECB and BoE), while investors may rebalance their holdings for the quarter-end which may cause additional volatility.

US30 rose sharply on Friday and broke above major resistance at 31320 pts which coincides with 23.6% Fibonacci retracement of the last downward wave. As long as price sits above this level, another upward impulse towards next resistance at 32410 pts may be launched. On the other hand, one should keep in mind that the main trend remains downward, and support at 29615 which is marked with a lower limit of the 1:1 structure is the nearest target for market bears. Source: xStation5

Company news:

Chewy (CHWY.US) stock rose over jumped 4.0% in premarket after Needham upgraded online retailer of pet food to “buy” from “hold,” saying that price increases for the pet products retailer are sticking and that supply chain issues are improving.

Chewy (CHWY.US) stock fell sharply in recent months and tested support at $22.50. Nevertheless buyers regained some ground last week and price broke above the lower limit of the descending channel. If current sentiment prevails, the next target for bulls is located around $41.30 and coincides with 78.6% Fibonacci retracement of the upward wave  launched in March 2020 and upper limit of the 1:1 structure. Source: xStation5

Spirit Airlines (SAVE.US) stock plunged over 5.0% in premarket after the carrier said it will accept the latest improved takeover offer from Frontier Group worth $2.7 billion, which is below the bid from other airline JetBlue (JBLU.US) worth $3.7 billion. However Spirit does not think that regulators would approve a combination with JetBlue.

Coinbase (COIN.US) stock fell more than 5.0% after Goldman Sachs  downgraded the cryptocurrency exchange operator  to “sell” from “neutral,” due to continued fall in crypto prices and slower industry activity levels.

Robinhood Markets (HOOD.US) shares added 2.5% in premarket  after Goldman Sachs upgraded the trading platform operator’s stock to “neutral” from “sell” despite Congress revealed that the company had difficulties in handling the meme stock frenzy which occurred at the beginning of last year. Goldman lowered the price target to $9.50 per share from $11.50.