Market Alert - Last Hour

The last hour has just started and after a session of 100% upside there is a bit of give back.

Small caps have led the move again, putting in the best percentage gain. Growth id definitely better today as SP500, DJ30 lag.

SP500 5.5, 0.21%
NASDAQ 46.57, 0.64%
DJ30 40.49, 0.18%
SP400 0.55%
RUTX 0.89%
SOX 0.82%

Speaking of lagging, volume lags Friday low levels, running 4% to 5% light on both exchanges. That is not that great a differential and could change with volume in the last hour.

SP500 and DJ30 have both bumped the 50 day MA's and DJ30 its upper trendline. Both have stalled there for now.

SP400 is similar, hitting its trendline on some decent gains.

NASDAQ rallied to the April lower high and has stopped there for now.

SOX has moved up to the 50 day EMA in a rather unremarkable move.

RUTX made it to the April lower high peak as well in what is the market's best index move.

Of course there are some good price moves but again volume is rather weak. BABA continues its move on strong volume as does HTHT, WUBA. Many stocks, however, look decent but show no volume on moves. We are thus focusing on those stocks showing at least some better volume for buys here in the last hour.

That said, we like AMZN, or did, even with its lighter trade, but AMZN is feeling the sellers here in the last hour, turning its chart to a gap to a doji today.

We will see how the volume fares and how the moves higher hold and then look at who is left. Unfortunately, when you factor in volume, many fall out. When you look at the intraday action, many more fall out, e.g. many oil stocks that surged early but have faded into big tombstone doji on the day. that does not leave many. ARWR is one. BZUN is not bad in a good group though volume lags.

Perhaps too cautious for some, but we are watching to see if real breakouts can be delivered. While some stocks are, SP500, DJ30 still have not made the breakout. The patterns look good but as with all patterns, they will have to show breakouts with some substance.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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