For the seventh day in a row, the market traded in very choppy fashion. We came close to breaking down on news of more earthquakes in Japan but found our footing and closed in the middle of the intraday range. While the bulls have not been able to gain much traction lately, the bears aren't gaining any ground either.
Despite almost 2-to-1 negative breadth on the Nasdaq, all major sectors except retail in the red and crude oil moving over the $110 mark, the indices refuse to crack. The convenient excuses for selling are there, but the underlying support is resolute.
The danger is that if we keep testing the recent support around 1325-1330 on the S&P 500, it may eventually succumb to the pressure. The bulls need to turn it back up here soon, or the momentum may completely dry up.
One of the positives today was that many of the liquid momentum stocks that were slammed yesterday came came back today, but there is still poor action in a number of key names, like AAPL and NFLX.