It was a choppy day with some negative action and now we are seeing a little selling of the AMZN earnings report. The report was ahead of estimates, but expectations were for something more than just a $0.03 beat.
I did not like the action I saw today. We had an intraday reversal to the downside following some good earnings news, there is very little momentum leadership, small caps acted poorly and the dollar is showing some strength. The action is still very much about the dollar so we have to watch it closely, but if it can continue to bounce, it is going to be an issue.
The problem for the bears is that, just when you think this market is about to rollover, QE 2 talk bolsters it. The rallies on QE 2 speculation have not been as vigorous lately, but it is still a force that market players are hesitant to fight.
The market is at a tricky juncture right now as we still have pretty solid technical support but there is some toppy action. The intraday reversal today is a sign that the bulls are losing momentum but we'll see what the mood is as earnings reports are digested. So far the Amazon report isn't seeing a very positive reaction.