Market Alert - To the Close

SP500 is showing the same pattern as the prior week where there was a sharp Thursday decline, then a doji, then a rebound. Do you bank that this one is different and go in with the SDS calls? Well, NASDAQ and SOX remain in their patterns and trends, holding over support. That means we are not going against them today.

But for SP500? It might gap downside Monday -- that happens at times. The market has, however, once again absorbed a lot of bad news from the terror bombings to the Trump self-inflicted bombings and the markets sold just as last week. With that, perhaps it is best to hold off, though we might open just a small part of the position.

The usual DC drama. Today Bannon leaves the White House after submitting his resignation on 8/7. Now I suppose his website will 'out' those in the administration he feels are not conservatives. The pot is stirred some more and nothing constructive gets done, just as some want, others don't.

Most quality stocks are not bad. Chips are working on new patterns, e.g. AMAT. Other leaders are holding at near support after a week that saw more late week weakness. They did it before and bounced. Again, is it different this time? Yes, a bit, but this far not making the break.

So, with many positions holding support, we are at status quo. JD is not rebounding so we likely dump it. SDS is fading so we may pick up just a few calls on it.

SP500 -3.37, -0.14%
NASDAQ -2.18, -0.04%
DJ30 -66.66, -0.31%
SP400 -0.17%
RUTX 0.08%
SOX 0.30%

Mixed market, overall holding the line.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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