As expected the indices gapped lower and are testing the 50 day EMA. Modest moves up from the lows but no major surge yet. Indeed, an early surge is not that great for a sustained move; can happen, just not as common.
This is still really the first dip from the rally. The 50 day EMA is a level we anticipated to show some support as discussed earlier in the week. It is doing so.
What we are watching are stocks such as V, GOOG, ISRG, INTC as signals of the leadership strength. So far they are showing nice tests of the next logical support, not disrupting their patterns. So far, good for them.
Others are questionable, and after this initial hold and modest bounce, the next move is really key for the session. Then . . . there is the afternoon session. Have to let these days work a bit.
SP500 -20.34, -0.74%
NASDAQ -65.83, -0.89%
DJ30 -154.36, -0.61%
NASDAQ 100 -0.97%
Jon Johnson, Chief Market Strategist
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