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Friday, September 14, 2018

Market Alert - Last Hour

Stocks cruised early more or less, selling off the higher open to the end of the first hour then rebounding quite nicely to midday. At that time Trump indicated he still wanted to go ahead with the $200B in China tariffs even if the 2 sides were going to meet. The market did not like it and bombed to new session lows over the next hour.

Intuitively it makes sense, i.e. keep the pressure on your adversary versus dropping the pressure just because the sides talk. That is how the US did things in the past and all it does is prolong the giant pain in the b**t with nothing accomplished.

For the market, however, it hated it. It has since come back off the lows in the last 2+ hours but has not reached the pre-Trump tariff comment highs, at least for the large cap indices. Midcaps, small caps, chips ARE back to those pre-comment peaks.

SP400 midcaps show a solid break higher off near support, RUTX as well. Solid upside bounces indeed. Good to see these economically sensitive indices bounce off support, but of course they theoretically stand to gain the most from tariffs.

Some interesting moves with OI position spiking close to 10%, NVDA 1.6%. Others test, e.g. HD, AMZN, AAPL, CRM, NFLX, TJX -- not bad action at all for a Friday with renewed tariff worries. Indeed, some of these are setting up entries for new positions.

OPK started trading this afternoon and is down, but it likely just has to get the pent up selling out and then it shows if it can rebound.

Stocks are off the midday lows as noted, now after a 15 minute or so test of that move we see if they can resume upside into the close the last half hour and put a decent 'testing mode' spin on the day.

SP500 -0.31, -0.01%
NASDAQ -4.07, -0.05%
SP400 0.48%
RUTX 0.59%
SOX 1.03%
NASDAQ 100 -0.23% -- AMZN, AAPL, NFLX are a bit lower today.
Jon Johnson, Chief Market Strategist

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