Despite a very poor open and 3-to-1 negative breadth as I write this, there aren't any signs of panic in the market so far this morning. The folks in the business media were quite excited and the bears were doing some high fives early on, but the dip buyers have shown up and there's no rush for the exits so far.
There was no bounce at all when the market sold off last Tuesday, but today's price action is much more positive. There's underlying support and buyers are looking for entries.
Of course, it'll be the close that counts, but the action so far today has been much more typical of what occurred in recent years when we got a dip. It simply didn't create much anxiety. On the contrary, it always seems to embolden many bulls, who have been constantly rewarded whenever they buy on weakness. The bulls have seldom gone wrong when they've jumped in on an opening like this.
We have about 60 stocks making new 12-month highs and about 75 at new 12-month lows. That looks to me like trading-range action rather than a market that's into a significant correction.
Tesla (TSLA) , Netflix (NFLX) and Alphabet (GOOG) , (GOOGL) are all in the green -- which is helping the tone -- and I like some of the momentum action I see. Global Blood (GBT) is still running, while Applied Optoelectronics (AAOI) is hitting new highs. My Stock of the Week is Supernus Pharmaceuticals (SUPN) , and it's breaking out to new highs this morning despite the broad market's weakness.
I've added a little to optical play Oclaro (OCLR) , but overall, I'm not doing much new buying. If our historical pattern of afternoon strength repeats, that will bode well for the longer term. But there are obviously some technical issues out there, so don't too sanguine about this action.