MLR - PMP 9/23/14

Published : September 23 2014 at 9:07 ET

Major averages fell on slightly above average volume. Leading stocks are getting hit hard once again. The S&P 500 and NASDAQ Composite are a little more than 1% off their highs, but both appear to be set to test their 50-day moving averages, which could provide an area of support. However, leading stocks are coming apart as we've seen with names like TSLA and NFLX, for example. Both stocks are failing at their 50-day moving averages with TSLA looking like a potential late-stage failed-base situation while NFLX has more POD-like characteristics as it busts through its own 50-day moving average as both stocks look to be headed lower this morning.

The MDM sits on a sell signal but will be quick to switch back to a buy signal should the uptrend resume. That said, corrections in this QE environment come fast so it will be a question of when to switch back to a buy signal. Futures are currently trading lower at the time of this writing as the market is set to start the day with a decidedly negative tone.

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.