Market Alert - Last Hour

Stock indices are just over session lows having hit those mid-morning and then moving in a lateral range into the last hour. Sales on close are, at this moment, not pairing off with buys and leaving a large sell deficit. The close could be ugly, but in getting so ugly that could be better for a relief move.

SP500 -40.45, -1.99%
NASDAQ -122.42, -2.60%
DJ30 -290.16, -1.67%
SP400 -2.90%
RUTX -3.49%
SOX -4.17%

Brexit is still the news with S&P lowering UK credit to AA from AAA. Lots of hand-wringing but that will pass as Britain will be stronger than it was before.

Dallas PMI, June: -18.3 vs -15 exp vs -20.8 May. April was better but not for long. Expectations/outlook is now negative 18 consecutive months. The workweek is at its lowest since 11/2009 as the employment component hit lows not seen in 7 years.

Oil was hit again though relatively it is holding up decently (46.33, -1.13).

Oil sector is getting hit as are chips, industrial, software. Utilities are of course better, not, of course, a great indication for the market in terms of a bullish run.

The market is still in the process of overreacting to the Brexit. We took some gain on the downside after that initial rush lower looked as if it was trying to hold. It has since formed that lateral range and we are watching the sell on close to see if this lateral move holds.

Bought some NVDA puts, looking at MNST, but many stocks gapped lower making it harder to enter. We would like to see some existing upside improve to the close. Several have broken support (MDR, NSC, ARNA, XLRN, APC). Often you get a test of that or even a false breakdown that reverses, but no guarantees on those. We will see how they work toward the close.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
______________________________________
Alert Key
http://www.investmenthouse.com/alertkey.htm


Customer Support: http://investmenthouse.com/contact_us.php