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Tuesday, November 7, 2017

Market Alert - Last Hour

All stock indices are lower with growth, outside of SOX, taking it hardest. Particularly nasty is RUTX (-1.32%) as it breaks sharply lower, undercutting the late October lows and pushing on the 50 day EMA.

SP500 -3.73, -0.14%
NASDAQ -26.39, -0.39%
DJ30 -26.69, -0.12%
SP400 -0.78%
RUTX -1.33%
SOX -0.25%

There are some taking hard punches: financial, broadcast (including NFLX), some retail (TGT, BBY).

Others are holding up fine: most FAANG, software, chips remain in good position.

One person on CNBC talked about a 'key reversal.' Not seeing it yet. What we are seeing is small banks yanking RUTX lower; big banks are hit hard as well. Perhaps the quick test we thought would come in late September/early October will show up now and set the stage for a year end rebound. Perhaps. Again, not seeing major reversals all over.

There are some positions we will look at closing because of their breaks to the downside that are not rebounding in all cases.

Volume is higher on NYSE as RUTX drops hard; some dumping of those stocks.

Given this action it does not appear time to pull the rip cord on the upside. Always be cautious and skeptical, but the big names that just broke out are not extended, and a day off is not a reversal.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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