Market Alert - Last Hour

Another surge by DJ30 and the RUTX small caps, but the rest of the indices are not following. DJ30's heavy financial and industrial bias is fueling the upside as banks, materials, industrials lead the post-election charge again.

The other indices tried to follow but found less firm footing.

SP500 4.10, 0.19%
NASDAQ -43.12, -0.82%
DJ30 218.46, 1.18%
SP400 0.50%
RUTX 1.60%
SOX -2.06%

NASDAQ gapped over its trendline with a big move but then reversed and looks to close significantly lower. FANG stocks, techs, chips getting hit.

SOX reversed as well at its trendline and has sold below the 50 day MA's.

SP500 gapped to a big doji that tested the 2016 trendline then reversed below that level.

SP500 gapped to a doji below the 2015 high.

RUTX has made it to the September highs, or darn near, and has faded just a bit.

We have not done much but watch. We know we will get better entries rather than chasing the gaps upside each session. We could have made money just holding the nose and buying Wednesday, but we kind of figured some moves such as NASDAQ, SP500, SOX, SP400 are showing today: big on the open then giving ground. We will get some better entries in great tests.

ROST, AMAT, GLW rallied but have rolled back those gains. We are letting them work. STX is up, holding positive but is off the high. Inclined to see if it is out of gas as other stocks are starting to show.

BWLD is enticing still, even though it gapped upside for a second session. It might just be a bridge too far right now; again, likely makes a test of this initial surge.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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