Major averages were up on lower volume compared to Friday's high-volume Russell Index rebalancing day. The NASDAQ moved back above its 50-day moving average while the S&P 500 remains below its own 50-day line. Going into tomorrow's short trading day and the Thursday holiday, we would not be surprised to see the action slow and the market attempt to "melt" to the upside.
In economic news, The Institute for Supply Management's manufacturing index bounced back to 50.9 in June from 49 in May, but the ISM said employment at factories contracted for the first time in nearly four years. Over in China, economic data also came in mixed with factory activity in China weakening in June, and China's official purchasing managers' index or PMI falling to 50.1 in June from 50.8 in May.
Tesla Motors (TSLA) rose to new highs as it broke out of its high, tight flag formation on about average volume. This does not seem to be deterring the stock from moving higher in pre-open trade this morning. We have reported on TSLA a number of times (see archives) as its fundamentals and technicals give it clear model book stock status.
As trade slows around the Fourth of July holiday, a favorable volume comparison situation might develop that helps to create a follow-through day in the indexes. Currently the indexes remain in what is now a five-day rally attempt off of last Monday's lows.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.