Market Alert - The Close

Wednesday was a slog, a session that went nowhere. Growth led the move with NASDAQ, SP400, and RUTX leading the upside, but it was nothing grand, nothing that changed the current status.

SP500 2.56, 0.11%
NASDAQ 22.41, 0.38%
DJ30 -42.18, -0.20%
SP400 0.26%
RUTX 0.32%
SOX -0.25%

VOLUME: NYSE -12%, NASDAQ -3%. Not much volume pushing the upside, typically not a good scenario when the indices need to push through important resistance.

A/D: NYSE 1.9:1, NASDAQ 1.6:1

SOX of course remains in good shape, still trending up the 20 day EMA; the day was a wash as it closed with a modest loss at the 10 day EMA. The trend is in place, it held the trend support in another test, yet it is not stroking the long ball at this juncture, just holding the flat line averaged out over the week.

SP500 and DJ30 posted nice bounces off the 50 day MA test Tuesday, and Wednesday they did not damage their position moves, they just went nowhere. Perhaps just a pause in a continuing move. The two certainly made a good test and bounced. Now the next move, please.

NASDAQ put a little more back into its continued move off the 50 day EMA with a close at the prior closing highs from earlier in March. FAANG provided the lift, almost exclusively. NASDAQ is now there at those prior highs but MACD is still heading lower, and volume is rather crappy on this rebound from the 3/21 selloff day. Back to where it started with so-so internals. Definitely a jumping off point for NASDAQ and its next major move.

SP400 continued higher as well, testing for the second time in a week the 50 day EMA. This is a higher recovery high after that 3/21 meltdown, putting SP400 the mid-March low and 50 day MA's. As with NASDAQ, an important point in the midcap's next move.

RUTX posted its fifth upside session, bringing it to the 50 day MA's as well, midway in the December/February range. That also brings RUTX close to the upper trendline in the downward channel off the early March high. That makes RUTX another index touching a very important level to determine its next move.

Leadership saw many of the same groups work well, e.g. biotechs, semiconductors. FAANG had its hand as noted. Software mostly held on. Some new groups continued to perform, e.g. oil. Some other new blood as well as internets were not bad (LLNW) and retail is rebounding after a selloff from some pretty good patterns (JWN double bottom, M showing the same, WSM gapping and rallying. Money moving to new areas. That always helps a rally.

We picked up some oil, LLNW and BITA as internets, added CRK and NE to the oil plays.

The market has some new groups stirring and coming off of their lows. If they can sustain moves that is of course good for the market rally. That is especially good news given that several indices are at important points in their rebounds and could use some new blood to help push them higher.

Have a great evening!

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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