Major averages closed lower on lower volume but at the top of their trading ranges, suggesting an attempted bounce. The question is whether the carnage is over or whether the market will roll over again. Leading stocks and FANG names are looking unwell having reversed a few weeks of gains in just two days though with QE a propelling force, names could just move higher from here. Futures are trading higher at the time of this writing as tech stocks continue their bounce off logical areas of support.
Focus List Review
Most names on the list have been hit with selling volume. That selling reached oversold levels by yesterday morning, and some stocks did rebound off of logical support areas. Those bounces continue this morning in pre-market trade.
AMZN found volume support at its 50-dma as volume yesterday exceeded volume on Friday.
ANET found volume support at its 50-dma and closed up on the day yesterday with volume exceeding Friday's selling volume.
BABA has not fallen below the 135.51 intraday low of last Thursday's buyable gap-up.
BOX bounced off of its 50-dma but remains in a weak position below its 10-dma and 20-dema.
BZUN held at its 20-dema as volume declined.
CC is sitting just below its 50-dma with volume declining to -20% below average yesterday. This should be watched for any potential recovery back up through the line.
FB undercut its 50-dma yesterday but closed back above the line on heavy volume.
LITE bounced off of its 20-dema yesterday but volume was below average.
NVDA held near-term support at its 10-dma on heavy volume.
SQ held support at its 20-dema and closed a nickeld above its 10-dma.
TRVG is holding along the lows of its current four-week base and just below the 20-dema. Watch for any recovery back up through the 20-dema as a constructive sign.
TSLA held near-term support at 10-ma on heavy volume.
VEEV bounced off of its 50-dma yesterday but is deep down in its pattern and still well over 10% below its recent all-time highs which it posted as recently as last week.
WIX has violated its 50-dma but has just undercut the prior 70.70 low in its current seven-week base. Watch for a possible U&R move back up through the 70.70 price level.