The Dow Jones Industrial Average is in the red for the first time this year and some of the speculative trading in small-caps is slowing. The big-cap FAANG names are holding up the Nasdaq 100 ETF (QQQ) , but the Russell 2000 ETF (IWM) is lagging quite a bit. Breadth is weak with about 2,600 gainers to 3,950 decliners.
The most notable action on my screens is the aggressive flipping into strength. Names like GAIN Capital Holdings (GCAP) and Social Reality (SRAX) were sold hard into early strength. There is also broad weakness in biotechnology and in more than a few of the blockchain and crypto plays. The FAANGs are the main thing holding up the market right now.
Traders are piling into Nvidia (NVDA) , Tesla (TSLA) , Arista Networks (ANET) and some of the other larger names. The weakness in the more aggressive speculation is probably a positive. Many of these stocks have been overheated and need a reset. I don't think this speculative trading run is over. We have a pause and that is a good thing.
There is a little more selling into strength today but there is still strong underlying support that is preventing it from doing any significant damage.