Market Alert - Last Hour

Resilient or psychotic or a helping hand? Stocks sold to a lower low with DJ30, SP500, SP400 indices breaking the early September low. Then they all rebounded on cue, cutting the losses to just fractions. Classic topping patterns from a double tops, trend breaks followed by a rounded tops. Once, again, however, just when the indices were rolling below a prior low, magic. Again.

SP500 -4.08, -0.19%
NASDAQ -19.75, -0.38%
DJ30 -23.42, -0.37%
SP400 -0.33%
RUTX -0.60%
SOX -1.04%

The recovery is not a complete one but it keeps the indices in their ranges and many stocks have recovered from some new lows of their own. Once again finding a trend that will take over the action is elusive.

SOX remains in its trend, simply testing below the 50 day MA's then rebounding to hold them. Nice test. NASDAQ is below the 50 day MA's but has recovered nicely enough. Its pattern is not as golden as it was a week ago. RUTX held the September low and bounced; perhaps it has a bit more upside it can work on off of this test.

DJ30, SP500, SP400 all sold below the September low but have all recovered back into their ranges. Still not good upside patterns but they held the lows.

Again, no clear trend is taking hold.

We will see how some stocks on the border recover late, but with this kind of rebound from selling to not selling so much and recovering the lows suggest a rebound at least to test.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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