Market Alert - To the Close

Stocks have been in the gutter all session, never showing upside life and indeed weakening rapidly into the close.

SP500 -16.07, -0.66%
NASDAQ -48.23, -0.77%
DJ30 -60.86, -0.28%
SP400 -1.06%
RUTX -1.00%
SOX -1.13%

FAANG is off but the action is the same with GOOG, AMZN, FB okay, NFLX AAPL not so great. Chips are giving back some of the ground recovered Monday. The same can be said for machinery, transports, financials -- you can go down the list for the most part. Don't like the action in the small and midcaps at all.

No real change in news. World tensions remain high as a Russian fighter buzzes a US recon aircraft. The ISIS main cleric is killed in the Mideast. Trump tweets China made a try to corral NKorea but failed -- leaving the question of what the US decides to do on its own.

A new healthcare bill is now said to be released Thursday as a working copy with a vote next week. Paul Ryan is to give a 'major speech' to a manufacturing group touting 'permanent tax reform.' Let us hope that means a flat tax -- at a reasonably low rate such as 11% -- or a consumption tax. The IRS and its due process suspending existence must go.

But, I digress.

We are watching several plays pull back so we are being patient to let them test and set up some entries. NFLX, QRVO are weak and we are looking at downside entries. As for existing positions, those on the bubble are getting a bit tedious but the patterns overall are still holding up.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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