Although breadth is running around 2-to-1 negative, we continue to have some impressive underlying support. We are back up to the highs of the day once again, and I'm a bit surprised that the dip-buyers are this resilient. Typically, dip-buyers become less confident as bounces are turned back, but so far, there appears to be a pretty high level of compliancy despite some good excuses for more energetic profit-taking.
Unfortunately, holding up doesn't do much to create new opportunity. Unlike Friday, when the Facebook news hit, we don't have any significant pockets of strength to change. A few big names such as Apple (AAPL) and IBM (IBM) are driving the indices, while the bulk of small-caps are struggling.
We'll see if the dip-buyers can hold us up into the close, but it looks like they are expending a lot of energy today and could run out of steam, especially since we don't seem to have any obvious positive catalysts on the horizon.
I continue to keep a close watch on the Facebook plays, as I think they will have another run once we move closer to the IPO filing. Other than that, there is not much on my radar on the long side.