Many things have changed about the market since the Great Recession of 2008-2009, but one thing that sticks out when the market has a poor day like yesterday is the lack of emotion. In the old days, that sort of action would stir up some fear and might even create a gap down open as folks worried that it was the start of a significant market reversal.
In recent years, that seldom happens. Instead of fear, the dip buyers can hardly wait to jump in. Traders are always hoping for a gap-down open to buy, but the dip buyers don't allow that to happen. They are so anxious to buy weakness at the open that they don't let it occur.
That sort of action makes for much more difficult entry points. Buying a flat open after a bad day just doesn't provide very good odds. Without stronger emotions, we don't have as many trade opportunities.
In the early going today, the indices are holding steady and breadth is about even. There is some strength in oil that is helping a few things, but traders are focused on the high-beta, big-cap names that were the main driving force recently. If names like Action Alerts PLUS holding Apple (AAPL) and Amazon (AMZN) lose momentum, that will cause a major change in market character.
There are a few biotechnology names, like Akari Therapeutics (AKTX) and FibroGen (FGEN) , that are moving, but not much going on with themes. Bulk shipper Star Bulk Carriers (SBLK) is on my radar, but not much else at the moment.
Technicians will watch to see if the indices start making lower lows. The refusal to gap down at the open was probably a short-term negative. We aren't going to bounce very well when there isn't any fear.