Major market averages were pummelled yesterday as the Dow posted its second-largest point decline in history, dropping 1,032.89, or -4.15%, lower on the day. All the major indexes posted lower absolute or closing lows on heavy selling volume.
Futures are higher as the market attempts a bounce after yesterday's bloodbath. Congress passed a two-year budget deal this morning. Expect heightened levels of volatility at least for now while the market figures out which way to go from here.
Focus List Notes:
The list has dwindled to only a handful of names, all of which have declined with the market over the past few days, some more sharply than others. During that time, however, we have jettisoned several names from the list, and for good reason. With the market in a full-blown correction, the long side of the market is clearly in limbo, and the fact that we have but three names on the Focus List holding above their 50-dma attests to this. Stocks that have held up so far and remained above their 20-dema or 50-dma are likely just the next names to come apart.
AMZN closed below its 20-dema, which is our current "tight" selling guide for the stock.
FB blew to pieces and appears headed for its 200-dma, which it hasn't tested since late 2016. The stock was a sell earlier in the week when it failed to hold the 10-dma, per our prior notes on the stock.
NFLX again tested its 20-dema, closing just a 22 cents above the line on slightly above-average volume. The 20-dema remains our selling guide for the stock.
NVDA reported a strong quarter after the close yesterday and is gapping up as a result. However, the stock busted its 20-dema on Monday, at which point it became a sell. For those who might still be long the stock, the 20-dema would remain a selling guide now that the stock has regained the moving average after earnings.
SQ closed below its 50-dma, and has failed on its recent supporting pocket pivot at the line.
Market Lab Report - Premarket Pulse for Friday, February 9, 2018
|9 Feb 2018 08:48 ET
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