Market Alert - The Close

Stocks just kicked it around on Monday with the large cap indices down just a hair while the small caps, midcaps, and chips managed decent gains. None of the movement, what there was of it, changed the relative positions. Man, if this is going to be the way it is up to the election, might as well get comfortable.

SP500 -0.26, -0.01%
NASDAQ -0.97, -0.02%
DJ30 -18.77, -0.10%
SP400 0.65%
RUTX 0.32%
SOX 0.57%

VOLUME: NYSE +5%, NASDAQ -13%

A/D: NYSE 1.1:1, NASDAQ slight negative bias

With no real movement that leaves the stock indices in the same position as Friday, not that great, but not nearly as bad as it could have been. Meaning? Investors could have just punted after Friday's events, selling now and buying, maybe, later. Instead they basically held position. Not selling off on what we have been told should be bad news for the market shows resilience, stupidity, or just a lot of apathy until the election is over. I lean toward the latter. Again, I am inclined to get comfortable, but of course when you get too comfortable you get hammered.

SP500 is sitting at the September low.

NASDAQ is still below the January 2016 up trendline it broke Friday, bbut holding over the 2015 prior all-time high and the September low.

DJ30 continues its lateral move below the 50 day EMA in a narrowing range.

SOX bounced off its 20 day EMA test, maintaining its trend and can put in a higher low. No issues for SOX overall.

SP400 bounced after spending 2 days below the September low. SP400 touched that closing low on the Monday high and backed off a bit. That is SP400's next key test, the September low at 1513, less than 4 points higher.

RUTX also bounced off its Wednesday to Friday break and selling below the September low. Not much of a bounce but it will likely test that break as it was an important one. Just a test that turns into a kiss goodbye and then more selling or a false break lower that rebounds and slingshots back upside. We will see.

LEADERSHIP

Overall the leaders held position, but as with the market overall, they were heavy this morning.

Energy was still sluggish. Financial stocks were not bad, just didn't go anywhere. Metals were mixed with FCX continuing higher and the patterns are still good.

The big names struggled as well. AMZN rebounded to recover some of the gap from the earnings announcement. AAPL showing a second doji over the 50 day MA's. FB gapped higher but could not hold the move. NFLX tested some finally but is in great shape. GOOG flopped lower toward the 50 day MA's.

Chips held decently but were again heavy. AVGO tried to move higher but closed below the 50 day EMA. LRCX looks good in a test off its last high. SWKS bounced off the 50 day MA. Some look heavy, e.g. MRVL as it could not bounce off that sharper Friday selling on rising trade. ON does not look bad with a test of the 50 day and a double bottom of sorts. There are still some very good looking patterns here.


On the day we bought some DNKN puts as it looks as if it could receive a dunking itself. Closed the options on MRVL as the stock could not bounce from the sharp Friday reversal on solid volume. Indices look heavy but did not break more, suggesting they are for now riding out the week ahead of the election. Not the most exciting action, but with most patterns holding up well enough, we left them to do just that for now.

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