Market Alert - The Close

A new month, a new quarter, same action. The indices all faded from a higher open, NASDAQ a higher high, but also rebounded off the session lows, and support, to close. Not a lot of fireworks for new money. Guess there was not that much new money.

SP500 -3.88, -0.16%
NASDAQ -17.06, -0.29%
DJ30 -13.01, -0.06%
SP400 -0.59%
RUTX -1.17%
SOX -0.55%

VOLUME: NYSE -9%, NASDAQ -2%

A/D: NYSE -1.3:1, NASDAQ -2.6:1

SP500 and DJ30 sold but put in a nice 50 day MA test on the low and rebounded to close in the same tight range. Very respectable rebound off the noon hour on the east coast, moving up all the way through the close.

NASDAQ moved to that new high but then reversed downside. It did test the 20 day EMA on the low and rebounded from that near support its trend. That is well enough, but NASDAQ is also still at the same peaks from March. Not selling off but definitely in a range trying to get over the 5925-5930 level.

SOX is still holding its trend up the 20 day EMA, testing it on the low and rebounding to cut the losses. It too is performing well but is also trying to get over its highs from March.

SP400 gapped a bit higher as well but it faded as well. Sold to the 50 day EMA on the low and managed a modest bounce. Good recovery from selling last week but the pattern did not really change back to the upside, then Monday it sold and just looks heavy.

RUTX also bounced nicely through last week but then similar to SP500, sold hard and it too looks heavy, sitting on the 50 day MA. Heavy, but then again, both SP400 and RUTX are still hanging in, following the other indices for now.

ISM beat expectations (57.2 versus 5.70), but fell to its lowest level in six months. Still easily expansionary, just an off month for now.

On the session we picked up some UNH upside, but that is all. JPM and TCBI were selling, but they were also up very decently off the session lows so we opted to wait and see if the intraday rebound attempt fizzles. Banked part of the gain on TSLA and now will see how far the rest of the position can run. CY may be on the way to a 50 day EMA test but we decided we would bank a bit of gain and see if it does hold that support. We can always move back in. IMMU was heavy and we took the rest off the table and will also see how it tests.

Overall the leadership groups still look very good. Yes there were some leaders that took fire but for the most part they remained solid. Maybe a bit down but still very solid patterns.

The disappointing aspect is the look of SP400, RUTX; it would be great to get them to start acting as if they actually wanted to go higher. NASDAQ is at highs but, as noted, it is also struggling to get through those highs. SP500 and DJ30 actually look best in terms of the test. ALL of them need to find some more life. They are buying themselves time to do that, and the leadership is still holding in. Once again the market is waiting for a reason to break higher.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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