Major averages finished roughly flat to mildly higher on lower volume. The Russell 2000 closed at new all-time highs. This is not signaling a risk-on environment but rather strength in the financials which are the largest group in the index. Yesterday's bounce was weak especially when taken in context with the aggressive selling in leading names over the last few days.
Futures are up as reports suggest President Trump will call for reducing the corporate tax rate to 20% from 35% this afternoon when he provides the details of the GOP's much-anticipated tax reform proposal. The president is scheduled to speak at 15:00 ET and promises that today's unveiling will be "very comprehensive." Up until now, such promises have been faint at best as it still remains to be seen how effective he will be in getting his tax proposals passed.
Focus List Notes:
ANET is holding support along its 10-dma and 20-dma and the top of its prior base breakout at 179.71. The 20-dema can serve as a reasonable selling guide if the stock fails on this most recent breakout.
BABA is making a break for its 50-dma, closing just above the line yesteday on heavy selling volume. The 50-dma can be used as a maximum downside selling guide.
FEYE remains above the top of its prior base structure and well above the prior September 7th buyable gap-up. The 20-dema can be used as a selling guide.
NFLX has pulled back to its 50-dma where it held support yesterday on light volume. The 50-dma is your maximum selling guide.
TTWO has broken below its 20-dema and held tight just below the line yesterday on above-average selling volume. The 50-dma can serve as a selling guide for shares purchased on the August 3rd buyable gap-up. For shares bought more recently closer to the $100 price level and along the 10-dma. The 20-dema would serve as a maximum selling guide, although using the 10-dma would keep things much tighter depending on one's risk-preference.
VRTX has violated its 50-dma, which would qualify it as a sell here. Those willing to give it more room, although we would not consider ourselves to be in that camp, could watch for a breach of the 147.18 that does not result in a bullish undercut & rally move as a maximum selling guide.
Market Lab Report - Premarket Pulse 9/27/17
| Published: | 27 Sep 2017 08:59 ET |
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