Market Alert - The Close

The indices tried for greatness Wednesday, continuing the rally from Friday as futures were up and stocks started the session higher, pushing the indices to yet again new highs. It was not to last, at least for most of the indices, as the solid triple digit Dow futures and 20+ NASDAQ futures could not, similar to the Astros in game 6, hold a lead. They sold noon, rallied into the FOMC rather dovish statement, but then faded into the close.

SP500, DJ30 and NASDAQ 100 managed a modestly positive close as the other indices limped in with relatively modest losses.

SP500 4.10, 0.16%
NASDAQ -11.14, -0.17%
DJ30 57.77, 0.25%
SP400 -0.27%
RUTX -0.67%
SOX -0.32%
NASDAQ 100 flat

VOLUME: NYSE -14%, NASDAQ +1%. NYSE trade tumbled back, NASDAQ held above average trade as it spun its wheels.

ADVANCE/DECLINE: NYSE 1.1:1, NASDAQ 1.7:1. Still pathetic breadth, but at least it was upside even as NASDAQ was negative.

DJ30, SP500, NASDAQ, SP400, SOX all punched out new highs while RUTX came within 2 points of a high. Then all backtracked off the highs though they did not all turn negative. Still trending to the upside of course -- the indices could not hold new highs, but it was not a reversal session.

We picked up some JASO on a nice break higher, tried to get some FLEX but it decided to get a volume surge late and we did not get the alert in the office until right at the close so we will be looking at it Thursday morning. Took some gain on CF, should have taken some on CRM but got a bit greedy and it faded on us. Closed the rest of LITE, some of CLVS, and KSU as it would not break lower.

Of course you have to see how the up then down action Wednesday plays out Thursday. Thus far nothing has impaired the upside move though once again the volatility creeps back in. FB earnings were huge, but it sold back afterhours when the CEO talked about how much money it was spending on security for its community. Of course he said that; the company is on 'trial' in the Congress the past three days.

Then futures fell a bit when a report came out that the much anticipated House tax bill -- delayed until Thursday -- will include a 10 year phaseout -- not phase in -- of the corporate tax rate. I cannot make this up. They all ought to resign right now if they think this is 'reform.' It is the same BS President Bush pulled with his 10 year tax cuts that then went right back up. Intelligent people who have no belief in what they are doing and consequently they put forth loads of crap that makes no one happy. What did Cruz say? Graham? Looks as if they are heading out the door.

Have a great evening!

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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