It was a deceptive day for the market. For most of the session, the Dow especially, seemed to hover around the same area, but a handful of sudden pops and drops made the trip between the bells very choppy. The S&P and the Nasdaq were a little less herky-jerky, with both of those averages trending gradually higher through the day. The net result was a mixed day for the market, and the tale of the tape at the end of the day reflected a rather muddled picture.
That said, there was still plenty of strength under the surface which wasn’t necessarily reflected in the Dow or the S&P. Breadth finished at 3:2 to the positive, only three of the major sectors finished in the red, and there was plenty of aggressive trading in some smaller names.
We’ve made it pretty clear over the past couple of weeks that we don’t have a lot of confidence in the broader market going forward, but that doesn’t mean the entire shebang is going to fall apart. As such, we are going to be keeping our time-frames short and looking for groups generating momentum.