Stocks were rattled on the sure thing China/US trade deal not looking so sure for Friday. After the gap lower, however, stocks started their recovery. A rally to midday, a 2 hour lateral move, then rallying toward the closing bell.
Once again stocks had a reason to sell but it was no disaster. Indeed, as we indicated, we bought some AMZN when the chance was there and many bought AMZN as well as other stocks. Most indices are still lower, but well off the lows. RUTX is trying to hold positive. GOOG is up on the day when the other FAANG stocks are lower -- but all are off the lows.
SP500 -12.66, -0.43%
NASDAQ -40.29, -0.49%
DJ30 -71.60, -0.27%
NASDAQ 100 -0.69%
Why not buying more? Because while we have no problem using a trade related drop to pick up AMZN and its solid pattern, we are not convinced the indices have to rally to new highs from here. Certainly they did not roll over and as noted, were bought from the opening bell. Still, we want to see how they react as the week continues toward that Friday trade meeting and they also react to the continuing attempts to move through that resistance.
Jon Johnson, Chief Market Strategist
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