Stock Market Early Morning Insights – October 13, 2016

Stock indexes were looking for direction on Wednesday after Tuesdays harsh selloff. There was little movement in any of the indexes and the NASDAQ composite, the S&P 400, and the S&P 600 all printed inside days if I include the wicks from the prior day. The inside days on light volume suggested that Tuesday selling had stopped, but the small bodies of the candles show us that there was very little conviction to take the indexes higher.

The top 50 group inclusion report shows very few stocks that are considered to be risk on trades. The Application Software group had three representatives, but it was one of the few tech groups with multiple stocks. The top 50 had a wide representation of various groups.

A couple of notable things about the NASDAQ composite. New lows surpassed new highs by one stock, and the Arms index was 1.3552 which indicates some heavy selling in selected stocks. It was a fairly uneventful trading session, but some money did flow back into the beaten-down REITs and Utility stocks.

Apple gapped open but closed about where it opened. The theory is that with the Samsung Note 7 shut down, Apple will get all that business. They may get some of it, but I don’t buy it. Android users are generally pretty loyal, and the new Google Pixel phones may capture much of that business.

This is a short report because I’m heading out early in the morning.

STOCK MARKET EARLY MORNING INSIGHTS

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