For the first time in about two weeks, we managed to close near the highs of the day. Of course, we were oversold and due for some sort of bounce, but at least it was a decent effort for a change. Volume was light and breadth wasn't great, but it was positive. The issue now is whether the bulls can keep on pushing a little longer, or will they quickly run into resistance.
Unfortunately, GOOG isn't helping. The Internet giant missed earnings estimates by a couple of cents, but that was enough to send the shares down $20 or so. That puts the stock below its 200-day simple moving average for the first time since last September. Of course, the fanboys on CNBC loved the report, but it doesn't look overwhelmingly healthy to me at the moment.
My big concern is that we have a negative theme developing so far this earnings season. This is the third major report to receive a negative reaction, and that is going to cause folks to look harder for exits as other reports roll out.
The bounce we had today was an improvement over some of the recent action, but it was neither very big nor very vigorous. Could be just an oversold bounce.
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