Market Lab Report - After the Open 10/27/16

Published : October 27 2016 at 9:53 ET

Major averages fell yesterday on higher volume with all majors now trading below their 50-day moving averages.

Ahead of the November 8 elections, given the extent of manipulation that has gone on in the markets via QE and also in the elections, the status quo wishes to preserve order. The markets thus need to continue to reflect the notion that all remains on the mend in the economy. This naturally puts a floor of sorts on any meaningful correction prior to the elections. At the same time, any meaningful moves to the upside remain muted given the truth about the global economy. 

Fortunately, November 8 is just around the corner, so renewed levels of volatility in either direction will most likely be the order of the day and the coming weeks. As we wrote in yesterday's piece, the S&P 500 has never traded in such a shallow band in its entire 59-year trading history. 

Reversing some of yesterday's losses that came on higher volume, markets are trading slightly higher on strong earnings reports from a variety of companies including TWTR and TSLA.


This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.