The market was due for an oversold bounce following two days of selling, but it isn't very energetic so far. The action is well off the early highs and there doesn't seem to be much chasing. Google (GOOG), Apple (AAPL) and Amazon (AMZN), which you would expect to attract some interest from folks who want to buy the dip, aren't doing much.
Breadth is solid with chips leading due to Hewlett-Packard (HPQ) earnings. Biotechnology is also doing well, while precious metals and energy are lagging. The momentum scans turn up Aruba Networks (ARUN), Sourcefire (FIRE), WebMD (WBMD) and Chef's Warehouse (CHEF) but it's a mixed bag and I wouldn't be surprised to see some flipping.
Overall, I'm not impressed with this bounce action so far, but it's early and we'll see if the bulls can pull it together. If they can work back to the early highs, they should be able to generate a little squeeze action. Right now, it looks like the day's lows are more likely. If it keeps fading, the selling is going to pick up quickly.
I'm positioned pretty much the way I want to be, with a few longer-term longs and plenty of cash. I'm ready and willing to buy but don't see anything of interest.