Market Alert - To the Close

The stock indices are now mostly negative with SOX attempting to be the loan holdout, but with just modest gains. Oh, NDX is higher as well, but it, as with all stocks, is well off the session highs.

SP500 -9.48, -0.36%
NASDAQ -5.74, -0.08%
DJ30 -111.91, -0.75%
SP400 -0.75%
RUTX -0.71%
SOX 0.20%
NASDAQ 100 0.13%

The recent leaders are taking a day off and as they did the big techs jumped, looked promising, but have faded. Still holding gains, but the intraday action shows them well off highs and volume lighter. Not inspiring confidence of any serious renewed buying. We did pick up a few GOOG positions but those have backslid as well.

Most positions are holding support and decent with the big techs concerning with the slide off the session highs. There is some nibbling, but it is just nibbling and again, the patterns are not showing sustained new buying.

One of the issues is the AMT. It was kept in for corporations in the Senate bill. Thus with the corporate rate lowered to 20%, that would push almost all corporations into the AMT. That is not good for big tech stocks, most of which enjoy relatively low effective tax rates under the current taxation schema.

Looking at VCEL but the volume lagged all session and it might be the better option to let it test the 4-day advance that broke through the 50 day SMA Monday, then move in as it bounces after a quick test.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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