DJ30 undercut the February intraday low by 15 points, SP500 came to within 20 points of its FEB low. Both have bounced modestly in the last half hour off those levels. No major surge, just a relief bounce.
NASDAQ is closing in on its 200 day MA that is still above the FEB lows. SP400 has broken the 200 day MA but still well above the FEB lows as well. RUTX is at the 200 day, also well above the FEB lows.
SOX is at a lower low on this selling but nowhere near the 200 day nor the FEB lows.
SP500 -83.11, -3.15%
NASDAQ -253.59, -3.6%
DJ30 -714.74, -2.99%
SP400 -3.01%
RUTX -2.72%
SOX -4.75%
We are told the market is showing its disapproval of the President's attacks on AMZN -- something one commentator said that President Obama did for 8 years; a good point. It is not okay if one side does it but then when your side does it everything is fine. If there are issues, have a law enacted. But, Trump's style is to tweet positions far to one side then to work from there.
With SP500, DJ30 testing the Feb intraday lows you would expect some relief moves off that level as a 700 point downside day faces some afternoon short covering.
For perspective, the market is still in the test of the FEB selloff. The gloom and worry is rising on the financial stations, a necessary part of the process. The tape is rather ugly, but when doing this kind of dirty work, uglier is ultimately prettier.
We are being patient, watching how another big push lower plays out. Of course the SP400, RUTX, SP500, DJ30 lateral moves last week are no longer lateral, but this king of blowout is part of the flushing action. We will see how the names hold and recover in the afternoon.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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