Before, the open market indications were looking quite poor, but as soon as the opening bell rang, the buyers showed up. Breadth is solid, with about 4050 gainers to 2450, but there are only about 30 new 12-month highs after the deep dive earlier this week.
Since the carnage involving the volatility instruments, there has been a notable change in the level of liquidity. I'm not sure what the dynamic is that is causing this, but it is a major shift in the character of the action and suggests that volatility is going to pick up, like many pundits have been predicting lately.
The important thing for now is that the indices hold above the opening lows. If that level is tested, it is going to trigger some pressure on the indices. The confidence in the dip buyers has eroded, and the bears are likely to be increasingly bold should there be signs of a failed bounce.
The good news is that there are some pockets of speculative action. Biotechnology continues to offer some of the best movement, with names like CRISPR (CRSP) , Viking Therapeutics (VKTX) and Global Blood (GBT) acting well.
There is still some nervousness about chasing like many market players were doing two weeks ago, but I'm still optimistic that stock-picking is going to work well, as the market deals with the recent swings.
