Market Lab Report - Premarket Pulse 4/27/16
Major averages finished mixed yesterday on higher volume ahead of the conclusion of the Federal Reserve's two day meeting which concludes today at 2 pm ET. A weaker dollar may prompt the Fed to adopt a more hawkish tone to support the dollar which would pressure markets. Of course, this is just Fed-speak as they remain committed to easy money as long as the global economy remains in a rut.
AAPL is trading lower by more than 7% after a disappointing earnings report. NASDAQ futures are consequently trading down more than 1% compared to S&P futures which are down -0.3%. Facebook (FB) is expected to announce earnings after the close.
Big-stock NASDAQ names have had a rough go of it over the past two weeks, and we have recently put out Short-Sale Set-Up reports on NFLX, GOOG, and MSFT. All three have continued lower this week. AAPL looks to be heading for the neckline of a large H&S formation extending back to last year, but may make an attempt to bounce back up towards its 50-day moving average. However, that is a bit of distance to cover, and we would watch for any failure on a retracement as a possible short-sale entry point.
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