Major Indexes reversed sharply off their lows after the Dow and the S&P 500 Indexes both busted their 200-dmas early in the day. This brought on a raft of bearish commentary, since the 200-dma is see as a "critical" long-term support level. But, as if often the case in this market, when things look their ugliest, the "Ugly Duckling" comes a-calling, and the indexes turned right around as the crowd was caught leaning the wrong way. That said, the S&P 500 has now knocked on its 200-dma roughly five times. Each time, the odds increase of a pronounced breakdown through this critical moving average. Such action would push other major averages below their respective 200-dmas.
Futures bounced around after the jobs report and are currently lower. April nonfarm payrolls increased by 164,000 vs. est 190,000. The prior month's increase was revised to 132,000 from 103,000. Nonfarm private payrolls rose by 168,000 vs. est 193,000. The previous month's increase was revised to 135,000 from 102,000. Average hourly earnings increased 0.2% matching consensus, while the previous month's increase was revised to 0.2% from 0.3%. The average workweek was reported at 34.5 also matching consensus. The unemployment rate declined to 3.9% from 4.1% (est 4.0%).
Focus List Notes:
Fortinet (FTNT) will gap-up this morning after a positive earnings report last night. Look for a possible buyable gap-up to develop.
Netflix (NFLX) held support at its 50-dma as volume dried up, which may put it in a lower-risk entry position, looking for a "LUie" type of recovery where the current "L" formation turns into a "U" formation.
Square (SQ) posted a pocket pivot at its 10-dma on a strong recovery from an early morning gap-down following earnings.
Market Lab Report - Pre-Market Pulse for Friday, April 4, 2018
|Published:||4 May 2018 08:47 ET|
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (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. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2019 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.