We kick off the week with a mixed start.
Traders are still looking for long entries but we don't have much energy so far. Breadth is a little soft, but not too bad, although sector strength is screwed to the negative. Biotech is leading and there is some interest in solar that is always a theme into the State of the Union address. Apple (AAPL) continues to bounce and that is helping the mood.
We did bounce off the early lows, but if we retest and break 1514.60 on the S&P 500, look for the bears to press a bit. The bulls are having a hard time generating further momentum, but they are doing a good job of support.
I don't have much new going on at the moment and am mostly focused on managing existing positions. There are a few things I'd like to buy, but they need to show more strength first.
One stock I'll be looking to accumulate is LinkedIn (LNKD). It should consolidate following the big move on Friday, but it will eventually work higher. There are a lot of folks who want in and I expect they will provide a solid bid. My plan is to slowly average in with a loose stop.
Keep an eye on day lows. The bears are extremely anxious to push and the bulls may stand aside and let them for a little while if we take out early support.