Market Alert - Last Hour

The indices are maintaining some gains but are also well off the mid-afternoon highs. Stocks maintained the early momentum and posted decent gains, now trying to hang on.

SP500 3.93, 0.17%
NASDAQ 9.59, 0.17%
DJ30 20.48, 0.10%
SP400 0.64%
RUTX 0.46%
SOX 0.04%

The index patterns remains relatively the same with the large cap indices holding support. SOX is doing what was necessary after its 20 day MA break, i.e. testing the 50 day MA's and doing so in a very orderly manner.

SP400 and RUTX have rebounded, but that is all today is: a rebound from the selling that does not change their status either. Theirs just happens to be below the 50 day MA's.

More geopolitical issues crowding out investing issues. Trump/Xi meeting that includes the NKorea issue. Secretary of State Tillerson coming out with strong language regarding removing Assad, but we need to be careful and make sure: Assad was winning, ISIS and rebels were on the run. Why would Assad use such weapons in that circumstance? Again, need to be careful.

Jobs report is out in the morning and today feels like some positioning, some covering ahead of that number in the event it shows the kind of resilience in ADP.

The action leaves stocks in no-man's land, not breaking lower, not surging upside. Biotechs are holding some good tests today after several broke support Wednesday. Everything just seems a bit calmer as investors await the next report. Last jobs report was well anticipated but there was no response to the order other than 'so what'? Could be we get the same reaction this month though SP500, DJ30 and now SOX have made good tests and are in position to make a move higher. The indices are trying to move upside into the close, just not surging.

As for buys, with the indices and leaders in a holding pattern, we are not that anxious to move into anything ahead of the close. May take BITA off the table, however, as it tries to recover toward the bell.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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