Major averages fell on mixed volume, marking the third time the S&P 500 has bounced off its 10-week moving average. After an initial drop, the majors bounced then spent the rest of the day in a trading range, closing mid-bar on the S&P 500 and in the upper range on the NASDAQ Composite. The S&P 500 now sits just under its 200-day moving average and is 0.6% away from its 10-week moving average. If it retests again, it will be its fourth retest. With each retest, the odds of a breakdown through support grow.
Yesterday's action also showed something of a "stealth shakeout" in big-cap NASDAQ leaders, many of which rebounded off of logical support or which are simply moving sideways in relatively tight bases, including names like AMZN, NFLX, PANW, CRM, FB, GOOGL, and MSFT. Even AAPL, which we have viewed as a short but which could easily rally from its current chart position IF the general market stages the proverbial Santa Claus Rally into year-end, as it has been holding tight and may be basing for just such a move.
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. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
