The reasons for the opening strength this morning were more suspect than usual and immediately invited some selling. There isn't any big rush for the exits but there also doesn't seem to be much of an appetite for buying right now. Breadth is running close to even and the number of stocks at new 12-month highs has collapsed to around 65 while new 12-month lows is up to 70.
The indices look lackluster but my view of the market action is primarily a function of the individual stocks that I am watching. When I see many stocks that I want to buy then I'm bullish and when I can't find many then I'm bearish.
Right now, I see very little that I'm in a rush to buy. There are a few things I want to nibble at like my recent favorites, HTG Molecular (HTGM) and Twitter TWTR but my cash levels have been growing and I don't see any way to put it back to work right away. If the indices dipped again then the setups would develop.
Alternatively, if we had a rip higher then some momentum chasing would appear but we are in the middle ground right now without enough strong movement in either direction.
You can be sure that the computer algorithms are waiting for a news headline to trigger some action. There doesn't seem to be much on the radar right now but the likelihood is that they will stick with buy programs since that has worked for a long time, although a little misdirection play wouldn't come as a huge surprise.
We'll see what develops, but right now this market isn't offering much opportunity.