Friday, December 14, 2018

Market Alert - Afternoon Session

Wednesday the Dow-type stocks performed the best with MCD, PEP, PG performing well while the rest of the market coughed up early gains. Today those Dow-type stocks are not nearly so solid and indeed many are feeling a lot of selling pressure. Food is down and JNJ is down hard on reports it new of the issues with its talcum powder, acting as a drag on the rest of the drug sector.

SP500 -44.82, -1.69%
NASDAQ -122.77, -1.74%
DJ30 -473.03, -1.92%
SP400 -1.20%
RUTX -1.06%
SOX -0.86%
NASDAQ 100 -2.03%

The rest of the market is getting a 1%+ pasting. Obviously the soft open did not lead to any bids returning.

If SP500 and DJ30 close at their current prices, they would post new selloff closing lows. Not new selloff lows, but for sure on the close.

SP400 and RUTX, of course, are at new selloff lows.

Disappointing earnings and guidance from some retailers despite positive November retail sales, JNJ's issues, overblown worries about what a Chinese slowdown means to the world are still weighing on the market and the algos are selling again.

DJ30 and SP500 are trying to set up for a bounce in the back half of the afternoon session, but not sure they will make it there with RUTX right now forging to lower lows on the session. With the breakdown of another important group it appears the market is picking off stronger groups one at a time. Software for the most part remains healthy, utilities of course, personal products such as PG are healthy as well. Will see how they perform this last half of the afternoon session and likely take a few positions and close some that are getting hit if they cannot post a rebound.
Jon Johnson, Chief Market Strategist

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