Market Alert - The Close

Perhaps SP500 and DJ30 were not ready for the glory yet; they didn't go anywhere, continuing the lateral consolidation of last week's break higher into a fourth session.

SP500 4.13, 0.17%
NASDAQ 43.99, 0.73%
DJ30 -27.05, -0.13%
SP400 0.27%
RUTX 0.50%
SOX 0.98%

SP400 and RUTX bounced off the Friday selling to the 10 day EMA, a good showing, but not making the new break themselves either.

SOX was very similar to the small and midcaps, bouncing off the Friday weakness, looking good with a hold at near support, but not making the break yet to that higher high.

NASDAQ was in its own world again. It surged 3/4% to yet another new all-time high. Straight up for two weeks with the big move the prior Monday gap through the March highs. No slowing down yet as FAANG all moved aggressively upside, AMZN and GOOG post-earnings, AAPL, FB pre-earnings. AAPL broke higher from a nifty pullback from the March prior all-time high. Perhaps a bit of earnings anticipation of a move as in February when AAPL gapped higher on earnings and then continued to rally all month.

NASDAQ is not slowing. Perhaps when it does the other indices will get some of the money and make renewed upside breaks. SP500, DJ30, SOX, SP400, and RUTX all certainly look well-positioned to make that next move. Hey, if the market wants to move in waves, that works. More than that, that is great. That can be that virtuous rotation where stocks in one group rally, then take a rest while holding the gains as other sectors and areas rally. Virtuous rotation.

We will see. NASDAQ surging higher while other indices watch paint dry is not exactly proof of rotation. No, but those indices are holding a good pattern and are still in bullish tests. We will see if they can deliver next.

On the day we picked up some NFLX and let other positions work if they would. AMZN rebounded back up to a higher high and a new closing high. AAPL broke higher as noted. CNAT, BCOR, AUPH all put in solid days. DLTR, PIR were doggish as retail performed poorly. Not everything was up, but overall the performance was solid.

Have a great evening!

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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