Major averages closed lower on lower volume, not unexpected on yesterday's Columbus Day holiday. After the sharp advance over the last two weeks, it is constructive for the major averages to take a breather on lower volume to let their respective 10-day moving averages catch up to their prices.
Focus List Notes:
ANET closed at a new high, but volume was extremely light at -42% below-average. A pullback to the 10-dma may be forthcoming.
BABA broke out of its miniature cup-with-handle yesterday on increased, but below-average volume. Over the weekend we noted that the tight action with volume drying up sharply likely hinted at a possible breakout attempt.
TTWO was knocked back down to its 10-dma on heavy volume after being downgraded to neutral by a major institutional brokerage firm.
VRTX is holding tight along its 50-dma after regaining the line last Friday. This action is coming after the stock posted a pocket pivot at the 10-dma two Mondays ago.
WTW continues to display volatile action, rallying off its 50-dma three times over the past week but losing momentum each time to close back near the 50-dma. This action may continue until the company reports earnings in early November.
Market Lab Report - Premarket Pulse 10/10/17
|Published:||10 Oct 2017 09:25 ET|
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