The Wednesday follow through is now in the rearview mirror, not from leaving it behind, but from falling away from it with the indices now trading below that entire move. Techs are leading lower as AAPL is off 10 clicks along with its major suppliers.
The food stocks, drug stocks, key retail are also taking a breather after an earlier rise while other areas fell.
The indices are selling toward the close in another example of where a build to the upside has no support for a third day. No one wants to bid the market outside of the recent leaders, and even those are sluggish today.
Interestingly, stocks such as FIVN, LASR, DATA, ZS are holding very nice patterns. Thus far, however, nice patterns have been unable to yield breakouts. Some that have broken in tech areas or areas outside the favored groups have struggled. Suffice it to say that they will have to show they can 1) breakout, 2) hold the breakout.
With the action today, the bias is downside as the indices such as NASDAQ, SOX look as if they have a mind to test the prior lows. Mondays and Tuesdays tend to set bottoms for bounces, but with the follow through so ignored, again, it is going to have to show good stocks breaking higher.
VIX 22.20, up but not at a point to mean anything.
Dollar continues to rally. The dollar rally is keeping oil prices lower after an early start.
Jon Johnson, Chief Market Strategist
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