Market Alert - Last Hour

Stock indices are for a 2nd session posting nice gains and holding those gains in the last hour as they continue working higher.

SP500 34.14, 1.67%
NASDAQ 88.31, 1.88%
DJ30 269.86, 1.55%
SP400 1.72%
RUTX 2.13%
SOX 2.09%

VOLUME: Slightly higher NASDAQ, a bit lower NYSE.

The moves push the indices back into their pre-Brexit ranges though still off the highs hit just before the Brexit vote to Brexit. Large cap NYSE indices look a bit better on the rebound perhaps, but all bounced well though below those recent highs.

Oil continues to climb, much more than the 7 rig drop would imply (49.42, +1.57).

Gold up as well: 1325.00, +7.10.

Technically there is recovery, but a lot of stocks have not recovered all the losses and are at resistance in many cases, e.g. financial stocks. To their credit the large cap indices are moving through the nearest resistance, thus showing they didn't just fold at the first brush with prior levels.

Other areas that are up but are going to face the first taste of resistance:

Big Names: GOOG, AAPL, FB. But, SBUX is shooting upside.

Oil: Up but not that impressive.

Metals: Steel and other industrial metals are up but just modest bounces below resistance.

Software: Some possibilities developing, e.g. BLKB

We are looking at MBLY, WWW as possible entries, PLAY and SUPN perhaps.

Some good patterns that held moves are bouncing. Some are not. A lot of stocks are up but most are in recovery mode without great patterns, and those are the ones at first resistance that are worrisome in terms of a continued market move higher.

At this stage, the move is holding, and if some of these stocks hold their upside breaks we are interested in picking up some positions in them.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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