We have a very familiar pattern this morning as the bears hope that the lackluster action results in some downside, but the dip buyers barely can control the urge to jump in at the first sign of red. Indeed, the dip buyers are so anxious they never ever allow the Nasdaq and FANG names to go red for long.
With the bears so incapable of any sustained pressure and the dip buyer acting automatically, the market simply refused to go down. Breadth is running about 24-38 negative and the new high list has contracted, but the same names that have been keeping this market elevated are still keeping it elevated -- Tesla (TSLA) and Amazon (AMZN) in particular.
But it isn't all FANG names; there is some action in optical stocks, for example. Lumentum Holdings (LITE) , Finasar (FNSR) and old favorite Oclara (OCLR) are making good-size moves. Some China names such as Momo (MOMO) and Alibaba (BABA) are holding up well, too.
If you are a market timer, the lack of movement in the indices is probably quite frustration. It's a little easier if you are a stock picker, with the relative strength in the FANG names. However, the action is narrow and you need to stay selective.
It is understandable that the bears keep looking for a rollover, but those dip buyers are so well-trained that they refuse to let it happen. If we start to see some lower lows intraday then it may be time to start being more bearish, but it isn't happening yet.