I wrote in my opening post this morning about how individual stock picking has been quite good despite the lack of volatility in the indices. There have been good pockets of tradable momentum on a regular basis and plenty of small-cap speculation.
That is not the case this morning. It is still extremely slow, but this time the underlying action has a bearish bias. Small caps are underperforming and breadth is approaching 2 to 1 negative. There is no real leadership to be found. My scan of stocks up on increased volume is not even a full page, which is extremely rare.
Technically, the indices are still within the recent trading range and it is hard to trust low volume action in one of the slowest weeks of the year, but stuff like this is going to excite the bears a bit.September is historically the worst month of the year, so if the bears are going to try to push, they have seasonality on their side.