The market just cannot seem to handle the upside. From a high to low move pre-market to a low to high move post-bell, stocks have again sold back after hitting a midmorning peak. Growth is a smidge stronger than the recent leadership as the latter takes a breather. By using the word 'stronger' I do not want to imply strength -- most are well off intraday highs, showing that attempt to move higher but finding firm footing fleeting and backsliding.
That leaves stocks such as AMZN, GOOG, MSFT et al with the look of a pause in their weakness before resuming their descent. The failure to hold a bounce attempt shows no appetite yet for sustained bids. Indeed, this session just was not one to set any kind of floor as there is yet to be a true washout and though there is a follow through, there are no leaders right now stepping up. Perhaps once the recent leaders finish testing (MCD, WMT, WBA, DG, etc.) and if stocks such as VMW and DATA can make good on decent patterns then the market can rally. Maybe. We are in Missouri now, i.e. 'show me.'
Oil is lower and inventories are after the bell.
China credit growth just logged its lowest reading on record. You KNOW it is bad if the communists provide a weak number. Perhaps that is why China has been playing make nice and wants to meet re trade again. It is dealing with a short fuse.
As for entries, we kind of like NVDA downside to see if it rolls back over. It sold hard Monday, bounced up to test the 10 day EMA today, but is backsliding. Not a complete rollover, but it if the upgrade cannot keep it up, not much will.
SP500 -1.78, -0.07%
NASDAQ 5.74, 0.08%
DJ30 -82.15, -0.33%
NASDAQ 100 0.08%
Jon Johnson, Chief Market Strategist
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