For the seventh day in a row, the dip buyers bought some morning weakness, but they aren't delivering much more than a minor bounce. Breadth is running about even so far, but the list of new 12-month highs is down to about 60.
The problem with this market is that while the indices are holding key support and are seeing underlying bids, it isn't translating into any real momentum. It is very narrow and there aren't many trades working right. The pockets of speculative action are very narrow. There are always a few junk names moving, but the chasing trades are too much work.
In my view, whether the market action is good or bad is a function of how many trades I can find. When I can't find much to trade, I consider it a bad market. It doesn't matter what the indices are doing. If there aren't some good setups and some decent movement, then I'm going to stand aside and do little.
That is the case right now. The technical action has some issues, but it has been holding. There is no reason to be overtly negative, but if you are finding a lot of good buys right now, then you are definitely using a different approach than I am.One stock on my setup list this morning is Omeros Corporation ( OMER) , but these setups just aren't going to do much unless there is better overall market. Most stocks tend to be correlated, and finding the exceptions is extremely difficult right now.