Major market averages continued to defy the odds by rallying ever closer to their prior highs in a very steep, v-shaped rally that may appear vulnerable to a pullback but so far has not shown any inclination to do so. The large-cap NASDAQ 100 Index posted its second-highest closing high in history yesterday as big-cap NASDAQ tech leaders continue to march higher.
Futures are roughly flat at the time of this writing. The new Fed chairman Jerome Powell said Tuesday, “In gauging the appropriate path for monetary policy over the next few years, the FOMC will continue to strike a balance between avoiding an overheated economy and bringing PCE price inflation to 2% on a sustained basis." Three rate hikes for this year remain on the table, but intense debate is expected as to whether a fourth hike may be needed to keep inflation at bay. Powell will answer lawmakers questions starting at 10 am ET.
Focus List Notes:
AMZN forged a new all-time high yesterday as it continues to rally in a steep and deep v-shaped formation. The extreme v-shaped formation makes the stock look vulnerable to a pullback, but so far nobody has bothered to tell the stock this. Meanwhile, it has not offered any lower-risk entry opportunities along the way.
NFLX broke out of a short, mini-cup-with-handle formation yesterday on below-average volume to post new all-time highs.
NVDA is choppoing around near its prior highs and just above the 10-dma. A test of the 10-dma at 241.77 might offer a lower-risk entry, although the deep v-shaped formation does appear riskier to buy into up at these levels. However, if other big-stock NASDAQ names are any guide here, it could just as easily launch to new highs.
Market Lab Report - Pre-Market Pulse for Tuesday, February 27, 2018
|Published:||27 Feb 2018 08:53 ET|
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