Stocks are near session lows as they bounce along in a trading range that found its bottom about 40 minutes into the session. Thus far not much progress in finding buyers, but note that the sellers cannot push stocks past the early floor. That keeps the indices mostly above near support, particularly the large cap NYSE. SOX is still acting somewhat of the problem child as it is just below the 50 day MA's, but even so it too is in the lateral range marking the first half of the day.
SP500 -17.93, -0.85%
NASDAQ -52.24, -1.07%
DJ30 -133.23, -0.74%
SP400 -1.50%
RUTX -1.66%
SOX -1.95%
Factory Orders, May: -1.0% versus -0.9% exp vs 1.8% April (from 1.9%)
Year/year Orders: -1.2%. That marks 19 straight months of declining Factory Orders. The records have been kept for 60 years now, and during that period the US has never experienced 19 straight months of declining Factory Orders, recession, boom, stagnant -- never happened. It is hard to reconcile that with the notion the economy is picking up speed.
FBI head says FBI won't recommend charges against Clinton after going through a pretty damning laundry list of things the Secretary did incorrectly. Proving it in court is another thing and the director believes it cannot be done. That is interesting, however, given the standard of proof for several claims does not involve any requisite mental state; just the fact it happened, if proved, is enough, and many are saying others have been found guilty of lesser events. Be that as it may, no charges. The market took it well enough, but didn't get any kind of break higher off the news.
Still waiting to see if any buyers use this rather modest dip to enter. Frankly, would prefer a2-3 days of testing the recovery, using a lateral move. Then a new break higher has some legs. BLUE is down from its recent move, but similarly we would prefer to see a 2-3 day sideways test and then use a break higher from that to enter.
Oil is getting beat up and the oil stocks are getting hit with it. Seems there was more of a crude build in Cushing than anticipated. This is an important group to see if bids return late in the session.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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