Major averages fell on higher volume. The NASDAQ Composite has been testing its 50-day moving average since last week. Given that other major averages trading below their 50-day lines adds to the likelihood that the NASDAQ Composite will follow suit. Earnings may also be a contributing factor.
CME FedWatch shows the odds of the next rate hike from the Fed will likely occur in September with an implied probability of 66.1%. Cooler than expected economic data including March Retail Sales, March CPI, and March Housing Starts, prompted the shift. The Fed has indicated they would hike two more times this year. If economic data start to show signs of real slowing, they may not have room to hike twice. Real GDP growth for the first quarter of 2017 has also been reduced to 0.5%, down from an estimate of 1.5% in early March.
Focus List Review
BZUN closed below its 50-dma for a second day. A move below Monday's intraday low would constitute a 50-dma violation and final sell signal.
CC has rallied weakly back up into its 20-dema. The 50-dma remains the maximum selling guide for the stock ahead of earnings in early May.
NFLX released earnings Monday after the close and after an initial upside reaction traded below its 50-dma yesterday, closing 4 cents below the line on very heavy volume.
SNAP rallied back above the 20.03 low of the prior week, triggering a short-term undercut & rally buy set-up using the 20.03 low as a tight selling guide.
SQ is holding very tight along its 10-dma and 20-dema ahead of earnings on May 3rd.
TSLA posted a voodoo volume signature along the $300 price level, putting it in a low-risk entry position using the 300 price level of the 20-dema as a selling guide.
TTD has violated its 50-dma, which is a sell signal. The stock had a huge price move in February through March and has since been in a steep correction as it retraces those prior gains. Another argument for why we will sell stocks into extended upside moves such as the one TTD had in February and March.