THE CLOSE AND PRE MARKET
Nice little swing yesterday off of Trump Jr news but after all was said and done, the selling was bought up. So far, the support levels we outlined for you in the past few days are holding. NASDAQ 6100 and the NDQ 5600. Also, the all-important SEMIS (SOX) held at 1020 breakout level. Though volume has been low, price is on the move from those support levels.
Futures up nicely this morning, especially on the NDX as Europe strong. Europe has been correcting but like most, the corrections have been shallow and short-lived.
Growth is starting to reassert again as the NASDAQ back above the 50 day with the NDX opening above the 50 day today. Just keep in mind, trade is now getting wide and loose and that’s after a good move up. That does not mean things do not go higher. In fact, starting to see a few new highs.
Major indices continue to show very little ability to correct in a meaningful fashion. The latest drop was stymied right at support for growth areas. Sellers just cannot penetrate lines of defense. We now move to earning’s reports and the reaction off of earnings. Most major indices remain constructive. When the NASDAQ/NDX and SOX were hit, the DOW and S&P didn’t budge.
We now add that we are seeing better action in a few commodity names. No leadership but feels like lows are being put in.
AIRLINES, HOUSING, CHINA ADRs showing up on our screens continuously…though they are very low beta. As stated, also again seeing favorite growth names starting to reassert.
Lastly, Yellen says some stuff today and tomorrow. Don’t worry…everything is just great. Markets say so.