Market Alert - Last Hour

Stocks are trading in the last hour and coming under just a bit of pressure. The indices are of course up after the gap higher but are not powering ahead. DJ30 is well off the intraday high; yes it is lower because of IBM but the Dow is off its high while IBM has recovered from its morning low. Other components are weakening.

SP500 13.62, 0.64%
NASDAQ 47.64, 0.92%
DJ30 76.98, 0.43%
SP400 0.61%
RUTX 0.71%
SOX 1.22%

Perhaps this is simply a start to a new bounce off the September lows. After all the indices are holding their gains -- showing doji. They all gapped to doji. NASDAQ doji at the 50 day SMA. SP500 doji below the 10 day EMA. SP400 doji at the 10 day EMA. DJ30 doji after tapping at the 50 day MA and sliding back below the 10 day. SOX gapped to a doji at the 10 and 20 day EMA. All held the September lows, all gapped, but at best they are not doing anything with the gap. As noted, DJ30 has slid 65 points from its intraday high.

Now it is likely those doji don't mean much. Big gap off of support, so they may have simply used up the day's allotment of upside gas all at once. If they can hang onto the gains then the upside door is still open.

Looking at APA upside, ROST downside, the 2 plays from last night. They are showing the action we want, though both could stand some more volume.

Overall a gap upside off the lows. Once more stocks manage to hold with SOX and NASDAQ still in their trends. The move has some questions given the gaps to doji, but earnings season seems to be providing some upside impetus. Enough questions on the action to let the downside work to see if the market falls back down from the doji.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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