Market Alert - The Close

Who would have thought? The DJ30 is a tease. Softer futures were building toward the opening bell and it looked as if the market might pull the old low to high and the swell would push DJ30 past 20,000.

But again, no 20,000 for you. DJ30 hit its high on the opening bar (19,986.56) and floundered the rest of the session. All of the indices pretty much followed suit.

SP500 -5.58, -0.25%
NASDAQ -12.51, -0.23%
DJ30 -32.66, -0.16%
SP400 -0.44%
RUTX -0.63%
SOX 0.04%

VOLUME: NYSE -12%, NASDAQ -11%. Lower, again below average volume, this on a downside session, so no heavy selling as the indices test back from the Tuesday upside gap. Indeed, none of the volume this week is gangbusters, but it is also the week before Christmas, and all through the street, not many a trader is stirring, not even for fees (okay, had a hard time coming up with a rhyme).

A/D: NYSE -1.1:1, NASDAQ -1.6:1

Just no catalyst to drive it higher, not even NKE earnings. Of course earnings misses from FDX, FINL, and ACN didn't help. GS, accounting for something like 25% of the Dow's move since the election, was basically flat has it has been for the past 9 sessions, and with that, DJ30 was flat. Metals, transports, financials, big tech were all flat and thus the Dow. Chips tried to run, and some held gains, e.g. LSCC, XLNX, but they were all backsliding from early highs on the session. Again, just no catalyst to push them.

Doesn't mean the action was not constructive. Still a good lateral move on light trade showing no selling, still plenty of good leaders and even some good moves as we picked up some CENX and LSCC in metals and chips. Just nothing definitive here in this week, at least not yet. This is seasonally a good two weeks and there are not many wanting to the be the ones selling the market. If stocks continue to hold, the seasonal upside bias likely takes effect and pushes toward year end.

So, we let most positions continue to work and picked up some new positions as noted. For now, as long as no one is really selling the market the upside bias is mostly in control despite investor bullishness hitting near 60. Leaders are testing but not breaking. Thus we continue playing the upside when it presents itself in good patterns and good moves.

Have a great evening!

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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