It has been a while since the indices have hit an intraday low after the lunch hour, but that is what we are seeing today as the dip buyers have failed to gain any traction so far. Many market players are convinced there is no way this market will be allowed to close poorly. It has been saved so often and so consistently that it would be a shock if we actually closed poorly. As I noted, we have not had a close near the lows of the day in over a month.
Breadth has been slipping pretty steadily all day and is now around 4-to-1 negative. Precious metals are about the only sector seeing any buying interest. Many of the strongest momentum names are suffering some sizable hits.
At the moment, the S&P 500 has cracked the major trading range to the downside, so there will be extra pressure to try to recover the 2158 area. A close below that level creates a major technical change.
The good news is that this sort of downside action is going to create some opportunity. Already I am looking at TPI Composites (TPIC) , my stock of the week. I hear Emerson Electric (EMR) indicated in their conference call that the wind turbine business is strong. That should benefit TPIC, which makes the composite blades used on turbines.
There will be plenty of other offering entry points, but the issue is going to be how far we correct before we find support.