Another day of back and forth trade: higher open, selloff to negative, an afternoon recovery cuts the losses. Indices were turning higher, but after the rally launched at 2:00ET and rallied into the last hour, some selling has returned.
SP500 -11.33, -0.41%
NASDAQ -31.52, -0.43%
DJ30 -109.91, -0.44%
NASDAQ 100 -0.40%
Thus, you see negative high to low action, an attempt to salvage the session having some success, but definitely the market is not rushing upside late.
DJ30 is in decent position, undercutting the 200 day MA then rebounding to hold it; good shakeout. The other indices show similar action, but they are below resistance in many cases.
The recent leaders mostly continue testing, e.g. WMT, MCD, JNJ. Retail is struggling more than the other two, e.g. ROST, M.
Some techs tried higher but in many cases they faded at least part of the move as the market gave up the highs, e.g. VMW.
More of the same: market has a follow through but the only follow through post-follow through has been downside thanks to a dearth of leadership. The recent leaders are testing this week, the growth areas (tech, SOX, small and midcaps) are still not producing moves from the patterns that are looking good.
Jon Johnson, Chief Market Strategist
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