Market Alert - To the Close

A 'mushy' day (another industry term) has all but SOX lower. Of particular concern: RUTX -0.76% and SP400 -0.52%. Both have the look of reversing the Friday move and are not bouncing into the close

SP500 -10.84, -0.42%
NASDAQ -47.76, -0.72%
DJ30 -46.85, -0.18%
SP400 -0.52%
RUTX -0.76%
SOX 0.35%


That said, many of the leaders are off just a bit -- 'mushy' is the word, e.g. LRCX, AMAT, MSFT, DATA, CAT, CMI, BAC, GS. Many of these are still up, just not surging. Drugs/biotech are at best status quo -- really mushy. GOOG is downright weak as is AMZN, FB. NFLX is the only FAANG not barking like a dog.

Some great moves: LITE, HTHT, AMBA. Picked up some LITE and looking at AMBA.

President says he is 'very, very close' to having his Fed chair nominee. Gold market did not like that. Not sure if the market liked that either.

Today was one of those days where the pre-market was a complete head fake as stocks started their weakness from the opening bell.

Okay, many times an upside expiration is weaker the following Monday; mentioned that last week. So, the market is showing its weaker Monday. the key is whether it is just a weaker post-expiration Monday or if the selling accelerates. Most stocks are holding near support and look like normal tests. That is good, but still don't like the look of RUTX, SP400, both keys to this market in our view given they led the move higher on the tax reform bandwagon. They could be signaling the faith in getting something meaningful done is waning. After all, you have CNBC every day saying there will not be anything meaningful -- mostly because they live in NY and NJ and DON'T WANT their ability to deduct their state taxes taken away.




Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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