Stocks gapped higher and the indices are sporting gains on top of the gaps. RUTX is continuing higher while the other indices are backing off from the recent highs just a bit as Europe closes.
DJ30, SP400, RUTX are all at new recovery highs, RUTX of course at a new all-time high. Those are important moves, taking out the prior recovery highs. Holding them through the session is key.
That leaves SP500, NASDAQ, SOX as still below the prior week's recovery highs. They are up nicely, but are not showing a powerful technical move.
SP500 23.34, 0.86%
NASDAQ 56.83, 0.78%
DJ30 349.79, 1.43%
SP400 0.86%
RUTX 0.72%
SOX 1.22%
Thus far we have taken some gain on two positions and that is all. We are waiting to see how this move holds. It is based on a positive story for sure, but the reaction to a positive story is the most important tell.
Larry Kudlow appeared on CNBC and talked about an ongoing process with China discussing other aspects of trade including IP, just what we wrote about in the pre-market alert. That only makes sense, but of course the naysayers were quick to shoot from the hip, unable or unwilling to look at the entire picture and be smart about it. Oh well.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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