Market Alert - Pre-Market

Futures vs FV: SP +8.70; DJ +76.72; NASDAQ +48.02

It would appear that the steady upside of the NYSE indices, particularly DJ30 last week, is holding sway. NASDAQ futures are up sharply as NASDAQ and SOX tested the 50 day MA last week with a double tap; those leading stocks are ready to try a bounce on the open.

And what is the grand news driving this? Nothing. A rally about nothing. There is no economic news of note.

M&A: EQT buying RICE and EQT is down 7% pre-market. That is not the reason for any rebound.

Tech CEO meeting at the White House today. On the agenda: a remake of the government.

Some downgrades (KR -- well after the fact), some company notes here and there, BA introducing a new wide-body aircraft in Paris. Again, not a lot.

What could be the real reason? Now new allegations over the weekend regarding the White House? The Russia connection is, as it has been, a dry hole. Clinton had more Russia connections with that uranium deal. Obstruction charges? Over the weekend the Trump council said he was not under investigation for that. No new issues, status quo remains, market happy.

Thus with the NYSE indices in a credible uptrend (though SP500, SP400, RUTX gave up new highs to end last week), stocks are set to bounce given no new negatives. The buy on the dip force remains strong in the market. Of course, that the market has magically held and reversed massive selloff sessions does not hurt the buy the dip mentality.


OTHER MARKETS
Bonds: 2.164% vs 2.155% 10 year

EUR/USD: 1.1181 vs 1.1195

USD/JPY: 111.25 vs 110.83

Oil: 44.74, 0.00

Gold: 1250.80, -5.70


Futures are holding near the session highs of the morning, with a slight trend higher over the past 5 hours. Very slight, but at least it is not a gap higher then go nowhere pre-market that tends to have the sellers take a shot at it.

The sellers had their shot the past two weeks. Some money shifted to NYSE indices over that time. At the same time NASDAQ and SOX managed to hold the 50 day MA with a double tap; they are going to try and make a move higher off that. How they hold the move off the 50 day MA will tell a lot of the tale.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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