Lower oil got the market off to a positive start this morning, but intraday weakness set in again and we closed near the lows of the day. There was a slight bounce in the last few minutes of trading, but buyers were in no rush to jump in.
Retail and defensive stocks led today while oil and metals were laggards. Particularly troubling was the poor performance of technology and many big-cap momentum stocks. There were really no good pockets of momentum to be found.
The downside has remained contained, which is a positive, and we aren't seeing any panic selling or a rush for the exits. The S&P 500 is just slightly off its recent highs and hasn't been gaining any major downside momentum. There is still plenty of technical support, but the longer we continue to experience this poor intraday action, the greater the risk that selling will pick up as buyers move to the sidelines.