A report that the US cancelled a preliminary meeting with China on trade ahead of the month-end planned meeting tanked stocks. Larry Kudlow is on CNBC right now saying there was NO meeting to be cancelled, that everything planned is still on. Broadest scope of negotiations ever, including technology, IP issues, etc.
Okay, stocks are up some on this late interview. Coming out to 'stick save' the market? Yes. If it is true, that works. Kind of like Mueller coming out about that Buzzfeed story? Alas, a sign of the times.
Anyway, the indices are testing the Friday break higher, coming back to the 50 day EMA on all the indices. Hardest hit is SOX, but it is holding the 50 day MA as well. We will see how stocks such as LRCX, SIMO recover -- they are on the bubble today given their action. Watching to see if the Kudlow statements 'rescue' the market from the selling, but again, the indices are holding key support in a test.
Biggest names are hit as well, e.g. AMZN, NFLX, GOOG, but mostly holding support. AAPL does not look all that solid, but CRM, DATA, NOW, ZS and others are holding up pretty well in normal tests.
SP500 -46.70, -1.74%
NASDAQ -151.65, -2.11%
DJ30 -377.14, -1.53%
NASD 100 -2.24%
Kudlow helped bounce initially, but quickly coming back to test that bounce.
Jon Johnson, Chief Market Strategist
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