The pattern of the market action for a while now is that the after a strong day like we had on Monday, the action goes completely dead. The Nasdaq had its best gains of the year yesterday, but it barely has a pulse today. It is holding steady, but breadth is very poor with about 1,800 gainers to 4,500 losers.
The thing that is most notable is that I only have about 25 stocks on my screen with movement of greater than 5%. Most of them are related to biotechnology, but it illustrates how momentum can fizzle out. That wouldn't be bad from a trading standpoint if stocks were moving around, but they just go dead instead.
Small-caps are lagging, which is why breadth is so poor. The FAANG names are exhibiting some relative strength, but it is mostly biotechnology that is showing some life.
A few other odds and ends are performing well. My Stock of the Week, Everspin Technologies (MRAM) , is now up $2.64, or 14%, so far and hitting new all-time highs. Volume looks very healthy and suggests continued momentum.
I am very lightly invested right now and struggling to find new setups to embrace. I have some index shorts in place, but the slow action doesn't mean that it is time to press the dark side. That is a boredom play, not a strategic one.
We need more energy in this market or traders are going to fall asleep, but technically the action is still positive.