Major averages fell on lower volume, closing near the low end of their trading ranges, and marking the first time the S&P 500 has closed below its 50-day moving average in 5 months. The NASDAQ Composite retested its 50-day moving average for the second day in a row while the Dow Industrials, semiconductors, financials, and the Russell 2000 are all under their 50-day lines. Even though today's trading day is liable to be on light volume ahead of the 3-day weekend, technical action of the majors is weak so assume nothing.
Focus List Review
We are seeing some names start to move below near-term support. In some cases this can trigger sell signals depending on what moving average holders of these stocks are using as selling guides.
AMZN dipped below its 10-dma and the $900 Century Mark yesterday on light volume. The 20-dema should serve as near-term support.
BZUN had a sharp pullback after breaking out, though after its 17% gain in 3 days from 4-7 to 4-11, taking partial or full profits is illustrative of taking profits when a stock's price gets ahead of itself. Alternatively, one could try to use the 7-week rule to stay in position though such stocks have been unusual in this environment.
CC dropped below its 20-dema on increased but below-average selling volume.
COHR dropped below its 20-dema on increased but below-average volume.
FB has now closed two days in a row below its 20-dema, the first time it has done so since the first week of January.
MKSI has violated its 50-dma.
SQ posted a pocket pivot coming up through the 10-dma and 20-dema.
TSLA closed below the $300 Century Mark and its 10-dma on slightly above-average volume.