For the third day in a row early weakness had the bears a bit excited, but the dip buyers showed up quickly and soon had the SPY at the highs of the day. This pattern of mid-morning support and a strong close has kept the bulls firmly in control.
Breadth is still running in the red, but we have some pockets of momentum. Biotechnology names are leading the action and some of the names I discussed this weekend such as Yirendai (YRD) and Acacia Communications (ACIA) continue to run straight up.
My Stock of the Week, TPI Composites (TPIC) , is off to a good start. This is a recent IPO and reminds me a bit of ACIA, although it doesn't have the sort of explosive EPS growth that really ignited ACIA.
Big cap technology names, Action Alerts PLUS portfolio holdings Google (GOOGL) and Apple (AAPL) , Growth Seeker portfolio name Amazon (AMZN) and Netflix (NFLX) are helping the bullish cause, but the small caps are lagging a bit, which is a slight change in character.
My biggest concern about this market is that the bulls that keep looking for a breakout from this trading range may grow weary if it doesn't happen soon. The setup has been ideal for a while and the action in individual stocks is quite supportive, but the inability to generate sufficient momentum for new highs is worrisome.
The good action in individuals is helping to cover up the stalling in the indices, but how much longer can that last if we don't break out soon?
