The market reaction to the French election is a yawn. The indices are holding steady, which is a bit disappointing after the strong close on Friday, but at least it isn't a "sell the news" reaction.
Once again, the biggest problem for market players is a lack of momentum. Neither bulls nor bears have been able to build on moves lately and the S&P 500 has been practically flat for two full weeks. As I keep pointing out, the indices look OK technically but the lack of energy under the surface is giving the bears some hope.
The most notable thing about the indices right now is the underperformance by small-caps. The Russell 2000 ETF (IWM) is holding above the 50-day simple moving average but it is stumbling about. There isn't much speculative interest in smaller stocks. Biotechnology, for example, is breaking below the 50-day moving average support.
I constantly preach that it is better to focus on the price action rather than the big-picture arguments. When the price action confirms the bearish thesis, then it is time to act. That hasn't happened yet but there is erosion in the market action and that makes those negatives more meaningful.
The indices are hitting intraday lows as I write and I'm going to stay very cautious.