Overall, it was a disappointing day for the bulls. The market was oversold and had some good earnings from Hewlett-Packard (HPQ - commentary - Cramer's Take) to bring in buyers, but they couldn't get much going. Even with oil dipping sharply following higher-than-expected inventory numbers, the market there had limited upside. Oil rebounded later in the day, and that put the pressure back on equities.
The market continues to be highly sensitive to the movement in oil, and that could be trouble, as many of the oil and gas charts are finding support and starting to turn up. Solar energy, for example, was a leading group today, which tells us that many are looking for the freefall in oil prices to come to end.
In addition to solar energy, the commodity-related stocks, such as coal, steel, metals, mining and agriculture, lead to the upside. Chips swooned late in the day, and retailers and financials struggled as well.
This is the type of market action we had throughout the downtrend earlier in the year. Market players looked for safety in the energy and commodity names, and the rest of the market moved lower. If the theme we saw today continues, look for some retests of the lows in the indices to occur. Once again, volume was light, but this is not good action, and it's important to stay defensive.