Monday, January 9, 2012

Once again, the market saw solid dip-buying after a weak start. Four of the first five trading days of 2012 started slowly and closed well. Strong finishes tend to indicate that market players are trying to add long exposure intraday because they are afraid the market will continue to run without them. It's better than a series of strong opens and weak closes.

On the other hand, volume is mediocre, breadth mixed and we aren't seeing much in the way of point gains on the indices. There are some pockets of momentum, with biotechnology the most notable today, but there also is some troubling action in GOOG, TGT and AMZN.