We have a little bounce action in the early going, but it's tentative as market players wonder if we really have fully discounted the developments in Europe. The election was fairly well anticipated but there is still much uncertainty about the ramifications down the road.
The dip buyers did a little reflexive buying on the bad news, gap down, which often works. But they have not gained any traction and we are rolling over a bit as I write. Breadth was close to flat but is turning back down quickly now and is around 2,100 gainers to 3,000 decliners. Apple (AAPL) tried to bounce, but has fizzled and is back near flat and I'm not seeing any major theme buying at this point.
Small-caps are particularly troubling as bids are disappearing in many cases. There just isn't much interest in trying to catch them at this point with both the fundamental and technical pictures not looking too hot.
As I wrote in my opening column, the media is going to push you to buy and the whole Warren Buffett circus on CNBC certainly played up that theme. I see no rush and I wouldn't be at all surprised if we breach the early lows and see another leg down.
I've not made any buys so far today and I'm just going to stay patient and see how this plays out. Lots of folks are very anxious to think we are going to shake this off and recovery quickly. That seems to be based more on hope than anything else. At this point the market will have to prove itself before it sees any more of my cash.