Major indexes sold off on lighter volume compared to Friday's bloated triple-witching options expiration volume levels, with the NASDAQ Composite Index failing on its recent breakout to new highs, while the S&P 500 Index broke below its 50-dma. We discussed these possibilities over the weekend in our Focus List Review, and they have now come to pass, hence caution is advised.
Focus List Notes:
Focus List names sold down to near-term support levels, in most cases down to their 20-demas, which is something we discussed watching for per our weekend Focus List Review notes.
AMAT, AMZN, BB, FTNT, NFLX, and TEAM all sold down to or near their 20-demas, while BZUN, LITE, and SQ were able to hold support along their 10-dmas. NVDA was the weakest performer as it broke down to its 50-dma, but found intraday support at the line. Some of these pullbacks may offer lower-risk entry opportunities, but it is important to keep your selling guides as tight as possible in the event the market continues to sell of further given the bearish developments in the major market indexes.
Market Lab Report - Pre-Market Pulse for Tuesday, March 20, 2018
|Published:||20 Mar 2018 09:16 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.