The dip-buyers were a little hesitant this morning but they went to work as we tested the lows of the last couple of days and they now have the market back near opening levels. Although there continues to be good support, there is more selling pressure under the surface today.
Apple (AAPL) and a few big-caps are covering up, but small-caps are seeing a little relative weakness.
Breadth is running 2000 gainers to 3000 losers and gold is the leader on dollar weakness. Oil and biotechs, which have led lately, are seeing some profit taking but banks, chips and most other sectors are mixed.
This pattern of early weakness and then aggressive dip-buying has been leading to strong finishes, so we have to watch to see if that continues. If we take out the intraday lows and/or close weak that would be an indication that the character of the action is changing but this is the exact same pattern that has kept us running straight up for weeks.
I've been mostly selling today but did pick up some Stamps.com (STMP) shares, which was a Shark Technical Buy this morning. It has formed a cup-and-handle pattern since the end of October and is perking up in front of earnings, which are due in a few days.
It certainly is impressive how this market has bounced back yet again from a weak start, but you have to wonder if the dip-buyers might be developing some overconfidence now.