Major averages pulled back on higher but below average volume yesterday ahead of the three-day Easter holiday weekend which starts Friday. Oil fell, closing under $40/barrel due to a larger inventory build-up than expected. In addition, hawkish commentary from St. Louis Fed President Bullard further pressured the markets.
U.S. markets have opened down this morning as economic data came in weak over in Germany and France, while the price of oil continued lower.
Given the market's extended state, it is entitled to a pullback. Given that a number of standard-issue base breakouts have occurred over recent days, we would look to failure of these breakouts as a sign that the current rally is potentially failing.
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.