Market Alert - To the Close

SP500 is making a full 50 day MA test, DJ30 sold to the 20 day MA. Both of these are right in line with what you would anticipate.

NASDAQ and NASDAQ 100 are both below the 50 day MA, but are well off the low. NASDAQ 100 has recovered to hold support though not the 50 day MA.

SOX has bombed to the August low where it found support to bounce before. This looks as if is the bottom of SOX' 4 month range.

SP400 has tested the 200 day MA and rebounded to cut the losses. It could be that the midcaps are finally ready to bounce. The 200 day bounced SP400 in April and May.

RUTX shows the same action as SP400, bouncing off an intraday 200 day MA tap. Last time it was at that level was early April.

Thus, the stock market was going to sell a bit deeper -- in some cases -- than a modest dip. Nonetheless, SP500 and DJ30 have thus far held important support. Others have dropped farther, but if SP500, DJ30 can continue upside, the other indices have sold enough to bounce.

SP500 -13.36, -0.46%
NASDAQ -77.51, -0.99%
DJ30 -157.81, -0.60%
SP400 -0.64%
RUTX -0.94%
SOX -2.13%
NASDAQ 100 -1.03%

The indices are up off the lows but the bounce is tenuous. Still, it is enough to let most of the plays continue into next week.

Also, Senator Collins just said she would vote to confirm after a very detailed, thorough recitation of the facts as well as a conciliatory theme re Feinstein and Grassley.
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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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