Major averages finished near the top of their trading ranges on higher volume. The S&P 500 managed to close at all-time highs as it looks to emerge from this cup-with-handle base formation. That said, such breakouts are often met with some resistance, at least in the short term. Futures are currently higher.
Focus List Review
Nearly all of our Focus List names are extended as the general market continues higher. There are some exceptions:
NFLX is holding tight along its 10-dma and remains in a buyable position using the 10-dma as a tight selling guide.
FB did not participate in yesterday's rally as it reversed at the 10-dma on increased selling volume, although it was -5% below average. The 20-dema comes into focus as a possible area of support and could present a lower-risk entry point IF the pullback occurs in constructive fashion.
SNAP continued to rally sharply yesterday following Friday's undercut & rally move up through the prior 18.90 low in the pattern. Watch for resistance to show up as the stock approaches the confluence of its 10-dma and 20-dema.
TSLA was hit with a downgrade yesterday and pulled into its 10-dma. By the close, selling volume came in 29% above average so this pullback cannot be considered constructive given the volume levels. Watch for volume to dry up if the stock is to have a chance at holding the 10-dma or, alternatively, the 20-dema which is 1.5% lower.
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