Major market indexes were relatively flat yesterday, but breadth was weak with NYSE decliners ahead of advancers by 1807 to 1107, despite the Dow closing up on the day and the S&P 500 down only -0.04%. On the NASDAQ, decliners also led advancers by a margin of 1541 to 1124. Uncertainty over the timing and outcome of the impending Senate vote on its version of tax reform legislation appears to be keeping a lid on the action, with some leading stocks like Square (SQ), for example, coming under severe selling pressure yesterday in what appears to be climactic topping action.
Look for the market action to likely be influenced by the swirling news flow as President Trump meets with Senate members today to work out a "deal" that will get tax reform passed. Futures are up slightly this morning as the market takes an optimistic view of such negotiations early in the day.
Focus List Notes:
We would remain focused on key support levels for current Focus List names as some are pulling in slightly, where they could present lower-risk entry opportunities. Overall, however, upside action remains muted as our two strongest performers over the past few weeks, ANET and WB, begin to slow down and pull back.
ANET initial support is at the 10-dma at 234.57 with the 20-dema at 223.09 serving as secondary support.
BABA pulled in slightly yesterday. Initial support is at the 10-dma at 186.63 with secondary support at the 20-dema at 185.42.
CAT pulled into support at the 10-dma yesterday, with secondary support at the 20-dema at 136.13.
FB closed slightly up on the day and remains slightly extended, although it is within buying range of last Wednesday's pocket pivot. Near-term support is found at the 10-dma at 180.07, with the 20-dema just below at 179.27 serving as secondary support.
NFLX continues to hold tight aloing its 10-dma and 20-dema, which keeps it in a buyable position using the 50-dma at 192.66 as maximum downside support.
NVDA was knocked down -1.3% to its 10-dma on higher selling volume, but remains contained within its current two-week consolidation along the 10-dma.
TTWO continues to hold tight aloingi ts 10-dma, but so far no resolution in either direction has been forthcoming. This remains within buyable range of its early November buyable gap-up (BGU), using the 20-dema at 114.70 as a maximum selling guide.
WB dipped below its 10-dma yesterday on higher but below-average volume. The 20-dema at 109.85 would serve as secondary support. Chinese stocks in general came under some pressure yesterday as Chinese markets closed down 0.9% overnight the prior day.
Market Lab Report - Premarket Pulse for Tuesday, November 28, 2017
|Published:||28 Nov 2017 09:01 ET|
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