Given the news flow the indices have been holding up quite well but they are starting to slip a bit more as the government shutdown issue drags out. Both IBM (IBM) and American Express (AXP) have failed to bounce back from early pressure, so that isn't helping matters either.
The biggest obstacle the market faces at this juncture is that it is technically extended. The strong momentum has offset that problem but it is a battle of attrition. Pockets of momentum are narrowing and the inclination to protect profits is growing.
Breadth is running nicely at better than 2 to 1 positive and I'm seeing some notable strength in the biotechnology sector, particularly as names such as Global Blood Therapeutics (GBT) , Apptio (APTI) , Iovance Biotherapeutics (IOVA) and Madrigal Pharmaceuticals (MDGL) are trading strongly.
I also see some strong moves from good bases in Gridsum Holding (GSUM) , Cheetah Mobile (CMCM) and RISE Education Cayman Ltd. (REDU) .
You have to wonder how much longer this market can run without a pullback of at least 2%. Nevertheless, you can't pass up good technical action in individual stocks because of the overbought indices. I still see quite a few good long setups and until that changes I'll stay bullish.
