Major averages fell on higher volume. Some nervousness was evident as former FBI Director James Comey testifies this Thursday at 10 am ET. Reports say he will stop short of saying President Trump interfered with the agency's probe into Michael Flynn according to ABC News. The New York Times reported last month that Mr. Trump allegedly asked Mr. Comey to shut down the FBI's investigation of former National Security Advisor Michael Flynn. If true, the incident may qualify as an obstruction of justice, which is considered an impeachable offense.
Focus List Review
AAOI tested its 10-dma and held as volume picked up slightly. The stock remains buyable on pullbacks to the line when they occur.
BOX was recently added to the Focus List but has now closed just below the 10-dma. Selling volume remained heavy yesterday after a block trade of 5.9 million shares was crossed in the low-19 price area on Monday. We would want to see volume dry up quickly here as the stock holds at least within 1-3% of the 10-dma.
BZUN held its 20-dema yesterday and closed up on below-average volume. This appears to be consolidating its prior gains in constructive fashion as it sits in a three-weeks-tight (3WT) flag formation. It remains buyable using the 20-dema as a selling guide.
CC closed below its 50-dma yesterday. A move below yesterday's intraday low would constitute a 50-dma violation.
COHR held tight at its 10-dma with volume drying up to -38% below average yesterday.
LITE posted a big-volume pocket pivot yesterday off its 10-dma, but was buyable at the line early in the day per our Focus List Notes in yesterday's Pre-Market Pulse report.
SNAP held above the 20 price level as volume dried up to -68% below average. The stock was hit with increased but below-average selling volume on Monday, and yesterday did not continue any lower as volume dried up sharply. This could set a floor for the stock if selling volume continues to dissipate.
WIX posted another pocket pivot as it bounced nicely off of its 50-dma on increase buying volume.