Dip Buyers Rescue Market Again, but Where's the Leadership?

 | Jun 15, 2017 | 4:34 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:






Market players were a bit worried this morning, but the dip buyers showed up and prevented downside momentum from building. The Russell 2000 ETF (IWM) was flat for most of the day, but the S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ) drifted upward most of the day.

Despite the benign action intraday, we still ended up with only 2,000 gainers to 4,750 losers. In addition, there were 175 new 12-month lows to 150 new 12-month highs. We haven't had more new lows than highs in a while, and it's noteworthy as it shows how momentum has died recently.

The bulls can take some comfort in that the selling didn't accelerate during the day, but that didn't mean there was any reason to do much buying. It has not been an easy market for stock pickers lately, especially with the FAANG names and many of the key momentum stocks losing their appeal.

If you are looking for market leadership, you will have a hard time. The financial sector has been showing some relative strength and that helps to hold up IWM, which is about 20% small banks, but without the FAANG leadership there isn't anything else really sticking out. If you look at the list of movers today, it is just a mishmash of action without any themes or key sectors.

I'm becoming more negative on this market as I am unable to find new buys. The indices still are in decent technical shape, but I am seeing signs in the price action of a potential down leg. The bearish bet has been a loser for a long time and I'll be ready to revert to a more constructive mindset, but I see little choice but to be more pessimistic right now.

Have a good evening. I'll see you tomorrow.

Columnist Conversations

General Electric's outgoing CEO Jeff Immelt had some choice things to say at an event in NYC on Thursday ...
our chart of the week worked out nicely! we'll bank this big winner and roll up SOLD BIIB AUG 270 CALL AT...
No news yet, but Ralph Lauren (RL) is surging in early trading. Shares that previously traded as hi...
Good morning. Just a few comments about stocks that are in the news. Forget what I said about Chinese Inter...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.