The action this morning feels like the market is struggling to shake off the effects of a Super Bowl party. It is very sluggish and slow but it is slowly improving. Breadth is running about 2,600 advancers to 3,800 decliners, but Action Alerts PLUS holding Apple (AAPL) is helping to hold up the senior indices while small-caps lag. Oil is reversing the strength is had on Friday, which is an issue and other big-cap FANG names aren't doing much.
One of the market's problems lately is the inability to produce sustained momentum in either direction. It has been especially tough for the bears, but the bulls have not been doing very well with follow-through either. The breakout, when the Dow took out the 20,000 level, failed and now this is the second try and it is sluggish at best.
Technically the key for the S&P 500 is the gap area under the 2,288, which was created on Friday morning. So far that is not an issue today, but if that area is tested it should trigger some stops.
I've been caught in a few reversals today and have been a net seller, but my Stock of the Week, Kornit Digital (KRNT) is doing well. KRNT offers a system for fabric printing that allows small runs. Amazon (AMZN) bought a number of units and also entered into an agreement for stock warrants. It is thin but it has a nice looking chart.
A couple of miners are on my screens this morning including Northern Dynasty (NAK) and Hudbay Minerals (HBM) , but there aren't many big movers or themes at work. The market is acting like it is hungover and it needs some time to regain its energy.