Market Alert - The Close

Monday started higher once more with futures trending higher all morning. Stocks opened higher, rallied farther to new highs, then backslid into midday. It took an afternoon rally to move stocks back up by the last hour to paint the close with decent gains.

SP500 4.47, 0.18%
NASDAQ 18.20, 0.28%
DJ30 85.24, 0.37%
SP400 0.04%
RUTX 0.00%
SOX 0.47%
NASDAQ 100 0.36%

VOLUME: NYSE -9.5%, NASDAQ -7.5%.

ADVANCE/DECLINE: NYSE slightly negative. NASDAQ -1.1:1. Downside breadth on an upside day. Not a great market session.

When you look at the session's action you see a virtual repeat of last week: SOX leading, large caps edging higher, small and midcaps still in test mode. Thus a new week and no change in the action. Not a bad thing for the upside as the indices put in more new highs while many stocks post excellent moves. Less than a stampede higher, but a very steady, very solid trend higher continues.

That was not bad for us at all. We let many positions continue to run because they are running well. Picked up some other good breaks upside because they put up good breaks upside. There are some issues with the smaller biotechs as support is being broken by a sizeable number -- rotation that is helping keep the lid on any attempt by the small caps to advance off of the 2 week test back to the 10 day EMA.

Afterhours NFLX added more subscribers than anticipated, mostly overseas. It moved up about 6 points afterhours but is up less than 3 clicks as time passes. Not the same reactions NFLX has shown in the past and we will see if the lethargic responses in the wake of earnings thus far (banks, NFLX) continues. The indices have rallied a long way, are still rising, and thus far lackluster responses to earnings have not stalled the move. Perhaps the tax reform hope is what keeps this rally going, and if so the Trump/McConnell get together today did not hurt. Tax cuts are powerful, but some positive responses to earnings would be a very solid indication as well.

Have a great evening!

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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