Market Lab Report - Premarket Pulse 10/20/16
Major averages rose yesterday on higher volume, but stalled and churned near resistance. The NASDAQ Composite Index again closed below its 50-day moving average after moving above the line early in the day, while the S&P 500 Index is finding resistance along the lows of the prior price range of late September and early October around the 4145 price area.
Precious metals and bonds seem to be getting support around their 200-day moving averages suggesting the fed may have to wait beyond December to hike rates. but the action is tentative rather than definitive, and stocks seem to be meandering in a directionless manner.
A number of Focus List stocks have bounced off support but weakly so. That said, FANG stocks seem to want to move higher, although overall we cannot say that this is a "target rich" environment for the long side. So the market overall seems to remain in a quagmire as it struggles for more definitive direction.
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