We have seen this movie before. I don't want to be pessimistic, especially with the Fed's itchy stimulus finger, but the index action has a familiar look, i.e. bouncing off support but moving up to resistance then fading the move. The indices still held gains on the day or in the case of SOX, posted modest losses. That means SOX and NASDAQ remain in their uptrends and there were no new breakdowns in the NYSE indices. The upside action, however, still lacks pop, and the patterns, though holding their own for now, are still bearish on NYSE and NASDAQ is not looking all that chipper (I know, not exactly an industry term).
SP500 4.69, 0.22%
NASDAQ 2.57, 0.05%
DJ30 40.68, 0.22%
SP400 0.45%
RUTX 0.44%
SOX -0.47%
VOLUME: NYSE +7.5%, NASDAQ +7%. Stronger volume on the upside move though still below average and overall anemic.
A/D: NYSE 2.4:1, NASDAQ 1.5:1. NYSE breadth getting a boost from the session leading RUTX and SP400.
The news was light with China making its GDP forecast (surprise! How do those communists do it?) but US Housing starts plunging 9% on a massive drop in multi-housing construction.
We picked up some APA and MNST upside as energy worked well and Monster makes energy drinks. Thin connection, but some good patterns there.
Took some gain on CRK as it enjoyed a nice move. Closed three downside plays despite misgivings about the market overall. IP and MCHP looked too strong with some solid volume on upside breaks of resistance. Had to act, but will look for more downside plays if the index patterns deteriorate further.
Have a great evening!
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
______________________________________
Alert Key
http://www.investmenthouse.com/alertkey.htm
Customer Support: http://investmenthouse.com/contact_us.php
No comments:
Post a Comment