For a day with the DJIA up 150 points, the mood wasn't very upbeat. We had some big point gains, great breadth and even a little better volume, but I saw few signs of buying urgency. In contrast, the last time we had a strong day back on Feb. 2, there was plenty of excitement, and many bulls were looking for the V-shaped move straight back up to new highs. Perhaps the failure of that bounce and the selling since then has taken a toll on sentiment, but it could be a good thing if we don't have a big leap in optimism. Maybe we can rebuild conditions so that we can climb a wall of worry once again.
Airlines were the leading group today, but this continues to be a market with no leadership. The dollar weakened a bit, which helped oil, steel, gold and commodity plays bounce, but by no means are those groups leading the market. Financials have been acting quite poorly, and technology can't seem to get much going, even though that group arguably has the best fundamentals.
The main catalyst for the movement in the market today was chatter about some sort of bailout plan for Greece. Discussions are under way, but it sounds like it may be a few days before something definitive is determined.
I'm not so sure that the potential of a Greek contagion is what has really been weighing on this market lately, so I'm not very confident that a bailout there will turn us up significantly. We are in a downtrend, and we are seeing an oversold bounce today, with the Greek news being the convenient justification for it....
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