There was something for everyone today with the DJIA red, the Nasdaq green and the S&P 500 flat. Apple (AAPL) helped the Nasdaq to lead while a good response to earnings form Goldman Sachs (GS) and JPMorgan (JPM) kept the S&P 500 flat and offset broader weakness. Breadth was negative on both major exchanges and small-caps succumbed to profit taking.
Within the big picture, the selling was minor and can be dismissed as routine consolidation. The action looks a bit tired and even some bulls would be happy to see pullbacks to provide better entry points. We just aren't seeing any real downside, even though the upside movement is limited.
Earnings reports from JPM and GS were definitely bullish. JPM, in particular, was mediocre but the buyers jumped in and pushed it higher. GS also traded very well and had strong buying interest. If these two reports are a sign of what is to come, then the bulls are in very good shape.
The biggest positive I see is that there isn't any real selling. The price action is very solid and there are few signs of real pressure. On the other hand, the biggest negative is that upside momentum is negative. We aren't see big point gains and breadth was definitely poorer today. It looks like many folks have their fingers on the eject button but aren't ready to hit it.
I've been raising cash lately, not because I'm bearish, but because I'm taking stops and not finding much new to buy. That often is a sign that we are near some sort of short-term top, but until the price action confirms it, I will continue hunting for new buys.
eBay (EBAY) earnings are out and the stock is little changed so far on a slight miss. We'll see if it can perform as well as GS and JPM.
Have a good evening. I'll see you tomorrow.