Virtually every earnings report issued on Monday night and Tuesday morning was hit with selling to start the day, but the bears were pressing a bit too hard. The dip-buyers stepped up at the open and drove us steadily back up all day.
As usual, volume wasn't very good, but breadth was close to 4-to-1 positive. Semiconductors and pharmaceuticals lagged, but strength in oil, steel and commodity-related groups more than made up for it.
Technically, we didn't breach any significant resistance level, for those that believe that stuff. Any time you have an intraday reversal, however, it is at least a minor positive. The bulls still have some hard work to do if they are going to turn the technical picture positive, but the action today was a decent start.
The big issue going forward is whether or not we will continue to see sell-the-news reactions to earnings. Apple will be a particularly good test of the prevailing psychology, but we still have hundreds of reports to deal with over the next couple weeks.
long AAPL
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