Better Today

After the pullback Tuesday, we managed a decent bounce today. Breadth was good but the volume was weak. The dollar pulled back, which helped some of the commodity names, but the most impressive action was in regional banks and retails. Interestingly, cruise lines also did well today. Does today mark the resumption of the V-ish bounce, or was this just a brief reflexive rebound after yesterday's selloff? The S&P 500 wasn't able to regain the 50-day simple moving average, and I don't see the sort of frenzied dip-buying we enjoyed so often last year. Still, this market has been remarkably sticky to the upside for many months, so it is tough to have much faith in the bears. 

I can understand why some folks think the market will continue to act just like it did last year, and continue to run up out of these poor technical patterns, but it isn't a bet I would make, based on the action I am seeing in individual stocks. What has troubled me most over the past couple weeks is the bulls' lack of energy, although we have had so many positive days. We don't have strong pockets of momentum or hot money chasing high-beta names. Even the big-cap technology names, such as GOOG, AMZN and AAPL have been struggling, though they did act somewhat better today. 

long AAPL