Some dip buying took the indices off the morning lows but it wasn't very energetic and breadth is still running 3,100 to 3,500 negative. The biggest problem today is the FAANG names, which have been seeing the 'sell the news' trade gain some traction since their earnings reports.
From a trading standpoint, momentum is very limited. I track stocks that are trading near intraday highs and there are very few on my radar. That tells us that intraday chasing of strength isn't working.
The most significant action I see is the selling of stocks that have posted solid earnings. Good earnings are not driving things higher right now. This is a shift from some recent quarters when poor earnings were bought and revenue misses were routinely forgiving.
Ultimately, names such as Ultra Clean Holdings (UCTT) , which had a great report and a big raise in guidance will find support but there is no easy way to determine when that might be.
The good thing about this sort of action is that it does create opportunities for patient traders. Still, it is tedious if you are watching the movement and looking for action. Things are pretty slow and the likelihood is that it is going to remain this way for a while.
Keep some cash on hand and move incremental. This is a market for slowly grinding out gains.