Market Lab Report - Premarket Pulse 11/16/15
Major averages fell Friday on higher volume. The S&P 500 broke below a major support point around the 2044 level, and the NASDAQ Composite once again broke below its 200-day moving average.
On Friday, another Fed governor said the time for a rate hike is "quickly approaching". The market seems to be taking issue with this, though historically, markets often correct prior to the first rate hike, then rally after the first rate hike which is considered a bullish event due to a recovering economy. However, this time may be different as economies around the world continue to atrophy.
Futures are slightly lower this morning in pre-open trade after dropping sharply yesterday evening. The markets' muted reaction to the recent Paris and Beirut attacks places the events as unfortunate social upheavals in a long string of such events. With each passing day, the planet grows closer to a significant sociopolitical tipping point. Regardless of how the future unfolds, always keep a close eye on price/volume of stocks and leading indices. Technicals always leave clues shortly before huge declines allowing for safe harbor before the storm.
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.