Stock Market Early Morning Insights – October 19, 2016

Stock Market Early Morning Insights – October 19, 2016

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Yesterday appears to be another distribution day although the stock indexes gapped open and closed above their prior day’s close. The problem was that volume was very light, and the indexes closed near the lower end of their intraday ranges. Also, the accumulation numbers, although they move slowly, have been edging down.

As always, some groups were strong including Airlines, Restaurants, Internet Media, and Application Software. Containers and Packaging stocks also continue to hang in there. The Semiconductor Devices did not appear in the Top 50, but had 28 advancers to only 2 decliners.

NFLX reported after the bell and beat earnings estimates handily. It is trading up around $19 from yesterday’s close.

After seeing the weak close yesterday, this market has the feel of distribution. The indexes continue to be stuck in a long term consolidation range. I am very leery of chasing early morning movement in stocks because the momentum generally does not seem to last.


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