Market Lab Report - Premarket Pulse 6/22/17

Published:

22 Jun 2017 13:34 ET

Major averages finished mixed on lower volume as the markets continue their sideways trade.

Initial jobless claims count totaled 241,000 vs. estimates of 240,000. Today's tally was above the revised prior week count of 238,000 (from 237,000). As for continuing claims, they rose to 1.944 million from the revised count of 1.936 million (from 1.935 million).

Jobless claims have remained below 300,000 for more than 2 years making it the the longest streak since 1970. These numbers give the Fed more room to hike interest rates.

Focus List Review:

AAOI & NFLX are both pulling back in a Wykoffian Retest type of move as volume dries up. This can mark the lows of a pullback and new base. It may also be setting up a "LUie" pattern where the "L" shape pattern turns into a "U" as the stock moves higher.

AMZN is back above the Millennium Mark, and appears to have completed the infamous "LUie" formation where an "L" shape pattern turns into a "U" as the stock recovers back up to its prior highs.

BABA was able to hold support at its 10-dma and rally sharply today on news that MSCI would now include China A-Shares in its emerging market indexes.

BZUN was able to hold support at its 20-dema with volume increasing. This would make the stock buyable here using the 20-dema as a tight selling guide.

COHR is holding at its 20-dema, which could indicate a LUie-type pattern is in process if it can maintain support at the 20-dema.

FB is another example of a "LUie" formation that has rallied back up to the highs. The stock should hold support at the 10-dma and 20-dema as a constructive indication.

LITE pulled into its 10-dma on a "voodoo" volume signature that was -59% below average.

SQ is holding tight at the 10-dma with volume drying up.

TRVG posted a five-day pocket pivot coming up through its 10-dma and 20-dema. Generally we like to see clusters of five-day pocket pivots in lieu of a single ten-day pocket pivot. However, volume was 32% above-average, which is constructive on its own.

TSLA is holding tight along the 10-dma as volume declines. This is constructive action.

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