The bears were unable to generate downside follow-through after the significant weakness on Monday but the bulls did an equally poor job at producing a bounce. It was a pause day with neither bulls nor bears able to do much. While the indices didn't close at the lows they were well off their early afternoon highs and that is not positive.
Technically the key for the indices now is that they hold the lows hit on Monday. They can afford to churn and not do too much but if those Monday lows come into play it will trigger sell stops and embolden the shorts.
Don't forget that we are nearing the end of the quarter and there will be some motivation to see things close on a positive note. Window dressing can help to keep certain stocks up but that is not a certainty.
Poor action in financials continued but there was some bounce in the FAANG names. One group that showed up on my screens this afternoon was small oils and I'll be looking at them more closely tomorrow.
Overall it was a mixed day without much progress by either side. We are going to have to wait to see how things develop from here.
Have a good evening. I'll see you tomorrow.