The question this morning is how aggressively the dip buyers will buy the weak open. They are making an effort, and had the indices off the early lows and breadth running just slightly negative. It is more a lack of interest, rather than aggressive selling, that is causing the pressure.
From a trading standpoint, the problem is that the routine bounce action curtails doing much on the downside, but there isn't enough energy in the recoveries to allow for aggressive trading. That can work well for the algorithms that are satisfied with fractional gains, but it is much tougher for human traders that want to catch some bigger swings.
Once again, the small-caps are outperforming the big-cap momentum and FAANG names. Alphabet (GOOGL) is an issue, as it deals with a large fine from the European Union, but it probably would have been down anyway.
The one big-cap momentum name that looks most promising to me is Alibaba (BABA) . It had a recommendation from JPMorgan last night, with a target price of $190. Technically, the chart is developing well -- and I'll be looking to accumulate it as it trades in the base between $135 and $145. I'll look to add when it breaks out of that box.
I continue to hold my Stock of the Week, Costco (COST) , and also Walmart (WMT) , as they recover from the Amazon (AMZN) pounding. There are a few other odds and ends working -- like Cara Therapeutics (CARA) and Zion Oil (ZN) -- but it is very slim pickings for traders.
It would be better from a trading standpoint for this market to sell off with some vigor, rather than bouncing weakly, but the market doesn't seem interested in what I want.