The most interesting aspect of this market now is how completely negative the news flow has been. We have had nothing to excite investors lately other than the hope that expectations are low enough that more bad news will be shrugged off.
Technically, the major indices are holding above the late December lows, which is a positive, but it is obvious there isn't a high level of confidence that they will not be breached at some point.
Given that we are still technically OK, and despite the high level of gloom and the low expectations, I'm bullish for an upside trade in the near term. We need some sort of news catalyst and it may be in the form of bad earnings news that is well anticipated.
Two stocks held back the market today: General Electric and Bank of America. Without them, the bulls probably could have gained some traction.
Even with the weakness in those key financials, it wasn't that bad of a day. It was quite choppy once again and we swung around in the last hour and a half, but breadth was positive at about 3,150 to 2,650 and almost all the major sectors were up except for solar energy.
This certainly is not a healthy-looking market for the moment, but we are due for some sort of relief bounce here soon. I know at some point we are going to see a decent bear market rally.
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