Although I didn't expect Thursday's window-dressing bounce to last, I didn't think it would fizzle this quickly. The S&P 500 is testing yesterday's lows and breadth is very poor with about 1200 gainers to 3950 losers. All major sectors are red and most of the key big-cap names are down as well. Facebook (FB) is one of the few positives that I see.
Since it is the last trading day of the month, we still may see an attempt to prop up key stocks into the close, but this action tends to confirm my thesis that a top is forming. You can be sure the bears will be looking to press if we take out the recent S&P 500 low at 1430.
It is starting to bounce back a bit, but this sort of action is creating overhead resistance, as many who bought are now regretting it and looking to escape with as little damage as possible.
As I mentioned, I sold down positions yesterday but it is never enough on a morning like this, so I took a few additional stops. I'm looking for some intraday trades but there isn't much on my radar. I continue to like the technical setup of Sarepta (SRPT), but I may have to start doing some digging on the short side now. Chipotle (CMG), for example, looks precarious.