The S&P 500 finished nearly unchanged but it was a very messy day. The TXN/NSM tie-up boosted the tech sector, which has been the biggest laggard lately, but the rebalancing of the Nasdaq-100 caused all sorts of gyrations. GOOG acted very poorly, and AAPL recovered well but still finished solidly in the red.
We also had a weak dollar and a big move in gold that caused some rotation. Gold stocks have not been on the active trading radar much lately, but they came to life today as the SPDR Gold Shares (GLD) broke out of a pretty good base. It certainly has to make you wonder about the health of the market if gold is assuming a leadership role.
Once again, the indices reversed and failed to gain upside traction intraday; however, they continued to hold steady. While the bulls haven't been able to add much upside in the last few days, the bears haven't been able to make any progress either. After five days of flat action we have worked off much of the overbought conditions but momentum is slowing and leadership narrowing. The bulls need to pick up the pace again if they want to keep the bears off balance.
It is very sloppy action with quite a bit of random movement.
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