Market Alert - Pre-Market

Futures vs FV: SP +6.35; DJ30 +61.33; NASDAQ +16.52

A steady left to right increase in the futures chart all pre-market with futures now surpassing the Friday afternoon peak before they slid into the close.

Okay, a higher open for the week, but where does that fit in context? NASDAQ, SOX, DJ30 still in solid upside patterns, up off support, not breaking higher yet, but in position. SP500, SP400, RUTX rebounded last week from the selling, but their patterns are bearish with each showing a bear flag that bounced back to resistance.

As with last week, the indices are split. The managed to move higher, but that did not answer the question as we noted last week. Now that a rebound has occurred and the small and midcaps and SP500 are at resistance, this is the more telling position. Got the bounce now will the buying continue?


Harvey is a disaster for Texas and a lot of the US. Major refineries closed as 9T gallons of rainwater fell on Texas. Oil? It likely struggles as now a lot of oil will sit around with no refinery to go to.


M&A: GILD buys KITE; LFUS buys IXYS; VMC buys Polaris Materials of Canada


India/China: Agree to disengage troops at the disputed border.


Trump: Wants China tariffs on his desk. Axios, for what it is worth, reports Trump is 'fed up' with Tillerson.


OTHER MARKETS
Bonds: 2.175% vs 2.169%

EUR/USD: 1.1935 vs 1.1924

USD/JPY: 109.32

Oil: 47.54, -0.33

Gold: 1304.00, +6.10


Futures are holding well into the open. How the RUTX, SP500, SP400 react in their bear flags at resistance will tell a lot of the tale.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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