Market Alert - The Close

After two upside days to new highs to end last week, stocks were a bit hung over Monday. Lower futures all pre-market gave buyers an opening, and they initially took it, driving the indices positive after a sloppy start. After that it was back and forth the rest of the session, ending on a 'back' as the indices sold back in the last hour.

SP500 -2.97, -0.12%
NASDAQ -10.12, -0.16%
DJ30 -22.25, -0.10%
SP400 -0.43%
RUTX -0.64%
SOX +0.26%

VOLUME: NYSE -19%, NASDAQ -4%. Volume was relatively light to end last week and it was even lighter Monday as stocks were overall sluggish. That shows no heavy selling on a day the stock indices took a break from the upside.

A/D: NYSE -1.7:1, NASDAQ -1.8:1

The action left the indices just off last week's new highs for NASDAQ, SP500, DJ30. SOX moved up to a new high regardless of the other indices as it refuses to take a rest. SP400 and RUTX backed off from their rebounds Thursday and Friday, but of course those indices failed to put in new highs on this last upside break.

Lower volume, modest losses after breaking to higher highs. Not the recipe of a rollover, just another pause in the ongoing trends, at least for all but the RUTX and SP400. Those two are still locked in their ranges. After a bit better data they attempted a recovery. The data, however, has turned back to crud, and it will be interesting to see if these domestic-centric indices can continue upside and try a breakout of their own.

Leadership was more of the same, particularly if your more is semiconductors as SOX was the sole positive index. NVDA surged off its 1-2-3 pullback, AMD was up, but a lot of other big names were just barely higher, e.g. TXN, INTC. ON was very strong, SIMO, LSCC are not bad. There are some worrisome moves as well, e.g. SMTC. Overall, still solid.

FAANG was quiet except for AMZN, GOOG. They were up, the others were just fine.

Metals still show promise, oil still struggles. Very much a similar story to last week with relatively narrow leadership.

We did pick up some AMZN early and it worked nicely for us. XXII moved up well and we picked up some. Took part of the ASUR gain as it surged past the initial target early session. Closed TSRO as it was a barking dog after trying to recover through Friday.

A sluggish session, but again, after two days of higher highs and new highs to end last week, a softer Monday is not a game changer.

Have a great evening!

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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