Market Lab Report - Premarket Pulse 4/29/16

Published : April 29 2016 at 9:41 ET

Major averages fell yesterday on higher volume with the NASDAQ Composite closing below its 200-day moving average while the S&P 500 got support at its 20-day moving average, though this is the second time since the S&P 500 bottomed in February that it has tested its 20-day line. A breakdown through yesterday's lows would be the first time it has done so since it began its strong uptrend, a potential ill omen of escalating concerns regarding negative rates.

The Bank of Japan announced they would be leaving things unchanged which was a disappointment to markets as it was expected the BoJ would further increase its QE program and move further into negative rate territory. Japan's economy which continues to deteriorate is perhaps a sign that negative rates have not been helping. This could send a strong message to other countries that are already in negative rate territory or to those who are contemplating going negative.

AMZN is gapping substantially higher on its strong earnings report. This, however, could simply result in a shortable gap-up rather than a buyable gap-up given underlying general market conditions.

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