The dip buyers bought the gap down open in the S&P 500, and the poor earnings from Apple (AAPL) aren't providing much spillover sympathy, but it is Fed day -- and that means dull trading until the news is out of the way. Breadth is still running quite strong, with about 3,500 gainers to 2,500 losers, and there are a few earnings winners -- like BioTelemetry (BEAT) and Nanometrics (NANO) -- but it is mostly a mish mash of action. Some of the small oil names are attracting interest and metals still have some pockets of momentum.
What generally happens on Fed day is that the bears start thinking that the strength into the news will be a "sell the news" setup. The market may actually even have a dip at some point, but the bulls are so well trained that they will be quick to jump on any pullbacks. No one is scared by selling, these days. In fact, it's the bulls that keep rooting for weakness, because buying pullbacks is such a sure thing.
I'm messing around with some smaller trades in names like Century Aluminum (CENX), DragonWave (DRWI), Yirendai (YRD) and Teck Resources (TCK). But with the Fed news coming up, it is tough to be very aggressive.
The strong breadth and limited sympathy selling on AAPL bodes well for the bulls. It really is impressive that the market can ignore the weakness in the FANG names. It will be a surprise if the Fed upsets the apple cart.
