Monday, December 17, 2018

Market Alert - To the Close

A relatively promising spike in VIX, now at 25.45, puts it back near the prior tops (25 to 28.50ish), but that still suggests some more selling on top of the current clobbering today to get a shakeout over.

Stocks gapped lower and sold steadily and are selling steadily into the close. Some stocks are holding support, many are not including stocks such as PG that of course is a defensive consumer stock. Healthcare is under pressure due to JNJ and the ruling on the ACA. Even utilities are getting sold some with profit taking. That is an indication the shakeout is getting to serious levels, but the indices today are showing no signs of bouncing off new lower lows -- except for SOX.

SP500 -64.66, -2.46%
NASDAQ -186.74, -2.69%
DJ30 -580.79, -2.37%
SP400 -2.44%
RUTX -2.22%
SOX -1.56%
NASDAQ 100 -2.64%

Took some gain on upside and downside, entered a couple of downside and looking at ULTA, CRM -- after this kind of drop and a 2-day sharp drop, however, could get a drop Tuesday to start and then a rebound after a nasty open. Thus, we have some good downside, can let them drop Tuesday on a weak open, then see how the rebound comes. That said, both CRM and ULTA look bad and can fall a lot on a big washout session downside. Thus we may use a late late bounce to pick some up.
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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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