Wednesday, October 19, 2011


The sun did come 'round and sneak up beside us again, despite AAPL's earnings miss and the Spanish debt downgrade overnight. The market started the day with mixed action. A strong report from INTC helped to offset the negatives, and the bears were fearful of another "Europe Is Saved!" headline, but the bulls never gained traction and the market dripped steadily lower all afternoon.

The most notable aspect of the action today was the lack of energy. Breadth could have been worse, but the only major sector in positive territory was utilities. Banks reversed after a good start, and even a frisky INTC could not keep the semiconductors in positive territory. Oil, gold, steel, commodities and retail all acted poorly.

The action was more reflective of a lack of buying interest than aggressive selling. There wasn't a catalyst for the bulls to keep on pushing, especially as we test overhead resistance and don't have a particularly strong foundation to build for any further move.