Market Lab Report - Premarket Pulse 2/23/16

Published : February 23 2016 at 9:09 ET

Major averages rose yesterday on lower, below average volume. The S&P 500 closed just below its 50-day moving average which could serve as resistance, especially given the straight-up-from-bottom action in the major indices. A bounce in oversold oil has served as a catalyst for the bounce in the markets, but given the lack of leadership and little to buy, the uptrend may be short-lived. As always, keep stops tight whether on the long or short side in this news driven gap-up, gap-down environment.

With respect to our recent Short-Sale Set-Up report on Facebook (FB) members should understand that the stock should be shorted under the conditions of a general market rally failure. Such a failure would also be confirmed by a break below the 50-day moving average in FB. Thus we consider the stock a "go to" short if the general market rally fails.

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.