Strength in the DJIA is covering it up, but the underlying action is quite poor. The Nasdaq 100 is in the red, as the big-cap momentum names are not seeing any window-dressing-buying so far.
I'm hearing a lot of chatter about how fund liquidations are causing the pressure in some of the favorites like Apple (AAPL), Amazon.com (AMZN), Chipotle (CMG), etc.
Breadth is still pretty good at about 3-to-1 positive and banks are helping. But technology is dragging and the selling in big-cap favorites is worrisome. It is a very confusing mix of action out there with the normal go-to names struggling while money flows into financials, which have been the biggest laggards recently.
Typically, the bulls have been able to build on an open like we have this morning. But the feel, so far, is much different. I'm not seeing the squeezing action and there doesn't seem to be much chasing at all. I suspect that may be due to the issue of fund liquidations. Unfortunately, this stuff tends to feed on itself and if we don't see a turn back to the upside soon the downside momentum will grow quickly.
I'm doing very little as I watch for opportunities to develop. The bears are grabbing the momentum and I have no interest in trying to fight it.
