For the last week or so I've been complaining about the sloppy and inconsistent market action. The indices have been deceptive, as there has been little sustained momentum, a lack of strong leadership and individual stock-picking has been very difficult.
That action is not only continuing Friday but looks even worse. The gap-up open that was primarily a product of Amazon's (AMZN) earnings report, was quickly sold and there are few signs of dip buying.
Once again, the action in the indices is mild but breadth is poor with around 2,475 gainers to 4,350 decliners. The number of new 12-month highs is around 160, one of which is Amazon.
The biggest problem this market faces right now is that there simply isn't any buying appetite. The news flow isn't bad and technical conditions still are good, but market players just don't have a strong desire to put more capital to work.
It is likely this lack of interest is due in part to negative seasonality and that tends to feed on itself. If others don't want to buy then why rush to put capital at risk?
The S&P 500 continues to fall at midday and I don't expect to see much dip buying on a Friday afternoon in the middle of summer.
Stay patient, honor stops and protect capital. Better opportunities will eventually develop.