The morning session was indeed further selling. SP500 undercut its 50 day MA an on cue Investor's Business Daily penned a story that SP500 flashed a 'bearish indication.' As soon as that story hit, SP500 bottomed and it has recovered to flat to positive, showing a nice tight doji at the 50 day MA. DJ30 undercut the 20 day MA but has rebounded and is positive. SOX continued lower below its 200 day MA, and NASDAQ sold farther as well; both have rebounded to doji. SP400, RUTX again tested the 200 day MA, again both have rebounded to flat.
It isn't fantastic action, but the indices tested lower and have rebounded.
Some key names are holding well, e.g. ROKU, NVDA at the 50 day MA with a doji, NFLX a doji at support, ditto AAPL. AMZN lower again but again held that July peak and found support. AVGO showing a doji at the 200 day MA.
Software group is struggling. Off the lows but not as solid a rebound.
Machinery sold but is holding support, e.g. CAT, DE.
Manufacturing same with EMR, ETN holding support, CAT with a nice doji over the 10 day EMA.
Energy is up or still working on very good patterns.
This is decent action but it is no confirmation of a cessation in the selling. Have to see how they move after this recovery action. Heck, have to see how they hold into the close.
SP500 0.75, 0.03%
NASDAQ -49.04, -0.64%
DJ30 48.47, 0.18%
NASDAQ 100 -0.60%
Jon Johnson, Chief Market Strategist
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