Market Alert - The Close

New highs on SP500 and DJ30! New highs! Never mind SP500 gained 0.29 . . points! New high baby. DJ30 'confirmed' the highs, adding its own after putting a scare into it Tuesday. At least it was up 24 points. Shiver me timbers.

I should not poke too much fun; they have hit new highs. For the session, however, it was more a day where the indices had run far the prior five sessions, reached or surpassed important resistance levels, and needed before too long to take a breather. Looks as if they were doing that.

SP500 0.29, 0.01%
NASDAQ -17.09, -0.34%
DJ30 24.45, 0.13%
SP400 -0.20%
RUTX -0.39%
SOX 0.08%

VOLUME: NYSE -16%, NASDAQ -10%

A/D: NYSE -1.2:1, NASDAQ -1.4:1

As per our plan, we banked some gain on the early move higher, posting solid stock and option gains on AGEN, EXAS, MBLY, KERX. After the initial move higher on the open, almost immediately stocks started to tail. Again, the setup was such that it was a good time to bank some gain then let stocks test to set up a new run that perhaps brings SP400 and the other indices to new highs of their own.

That is about the size of it. Oh sure we can speculate about this being the top and a rollover is coming, but nothing suggests that is the case: volumes were lower on the fade/stall, most stocks are holding up decently enough. The sellers can always lay into the market, but nothing suggests that, and with the central banks backing the move, the sellers have thus far been reluctant to challenge the advance and likely remain hesitant until something works to change the landscape similar to how the central banks changed it when they moved back in.

Have a great evening!

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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