The Nasdaq managed its seventh straight positive close, but the strength of the indices is not reflected in the action of individual stocks. We have a few that are acting well on earnings reports, but most key leadership stocks like AAPL, GS, NFLX and BIDU are struggling.
Breadth improved during the day and we closed near the highs, but it seemed like just going through the motions without any real buying conviction. When the indices are acting like this, there usually are some very aggressive pockets of momentum - but no one seems to be seeing much of that. It is classic non-confirmation action, but the market has had a tendency to shrug that sort of thing off and stick it to the skeptics who start to contemplate the possibility of a pullback.
News is hitting that RIMM lowered guidance, and MSFT shares are down after initially trading up a few cents on its earnings report, so there are some negative catalysts in place. Microsoft has been a laggard for such a long time that it's very unlikely to attract much interest outside of value buyers who don't worry about the opportunity cost of dead money.