Concern: Investors Aren't Buying on Weakness

 | Jan 31, 2017 | 1:57 PM EST
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While there are some signs of underlying support, the dip-buying interest is limited. This isn't developing like so many of the other pullbacks we have had in recent years where the buyers have been lined up to take advantage of even minor weakness.

Breadth is much better than yesterday with about 3,000 gainers to 3,700 decliners, but the upside moves are seeing selling pressure. The only momentum is in some garbage names like DryShips (DRYS) Diana Containerships (DCIX) .

Biotechnology has lost some of its bounce, but it is acting better. Some areas of support are building, but they are still quite precarious.

The market's attention is going to quickly turn to tonight's earnings report form Apple (APPL) . Apple was once known for the under-promising and over-delivering but that has changed in recent years. Now the market simply hopes that the stock met expectations. There have been some skeptical analysts and the runup in the stock since the election has raised expectations, but Apple is now more of a value play than a growth play so it is judged by a different standard now.

A poor reaction to Apple tonight may be an issue for a market that is show signs of struggle. However, we have the Federal Reserve stepping up on Wednesday and earnings news will fade away quickly.

The indices are still holding key support levels and haven't fallen into a downtrend, but the hesitancy to jump in this weakness is a concern. The good news is that the wall of worry is growing and a quick turn back to the upside would not be too much of a surprise if there is a spark of positive news.

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