The bears are putting up a little more of a fight today as they have turned back a pretty good dip-buying attempt and have us back slightly in the red.
It isn't exactly a rush for the exits, but there is a bit more pressure out there than we have seen lately. A few big-caps like Apple (AAPL) and Google (GOOG) are helping to keep the indices up, but breadth is slipping slightly and small-caps are lagging.
We are retesting the early lows as I write and that has resulted in another selling push. The time to be more bearish is when the dips fizzle out quickly and trap bulls. The bulls will tend to set stops around the lows of the day and once they trigger the selling can accelerate quickly. A series of failed bounces is what turns an uptrend into a downtrend.
I've been dinking around with some small trades, but I do not like this action this morning and am tightening things up quite a bit. It isn't like there is a great supply of long setups anyway, so being more defensive isn't going to result in too many missed opportunities.
I'm just hoping we can actually stay down for longer than a few hours and shake things up a bit. As I discussed this morning, the consistency of this market has been getting on the nerves of many and a little volatility would be quite refreshing.
More from Rev Shark: