The good news is that breadth is running slightly positive and we aren't seeing downside momentum build, but the dip buyers aren't showing much interest so far. I suspect they are hesitant to jump in front of Janet Yellen's speech, which is scheduled for 10 am ET on Friday.
The best action I'm seeing so far this morning is bounces in biotechnology names. The algorithms pounded the sector after the headline from Hillary Clinton about drug pricing and some of the names that were caught in the wake are acting better. One example is Global Blood Therapeutics (GBT) , which is back up 4% this morning after a 5% hit yesterday.
Ideally I'd like to buy a negative response to Janet Yellen tomorrow. I'm sure I'm not alone in that thinking. Buying a dip on Fed comments has worked so well that we seldom have a dip in the first place.
It is very slow going out there, but the good news is that the selling of the last couple days has dried up quickly. The sense is that it was just some machine action and was mostly technically driven. So far, there is no major change in market character.