The hallmark of the market in 2012 has been the very solid underlying support provided by dip-buyers. Any weakness has almost immediately been bought, and we have not had any failed bounces of note.
That has changed a bit today. We now have two failed intraday bounces and we are making a new low. I can't remember the last time I've actually seen a lower high intraday. Typically, when the dip-buyers jump in they just keep pushing and scare away any lurking bears.
Under the surface, breadth is running a bit better than 2-to-1 negative on light volume. There isn't any panic selling and we still have the king, Apple (AAPL), in the green. Market players are more cautious and they are protecting gains more zealously.
Bulk shippers are the hot speculative group today, and some of the small oils, such as Endeavor International (END), Magnum Hunter Resources (MHR) and Kodiak Oil & Gas (KOG), are doing well, but the bulls are not pushing to the same degree that they had been.
At this point, it is nothing more than a pause within a major uptrend -- but we have to stay watchful in case it develops into something more severe.
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