The dip buyers showed up but they aren't sticking around. While indices are drifting back toward the early lows, the bears need to close the deal by keeping the pressure on the rest of the day. A late-day bounce is almost routine these days
Breadth is still underwater, with about 3,000 gainers to 3,600 decliners although more than 400 stocks are hitting new 12-month highs, which means there is still a healthy dose of speculative buying in many smaller stocks.
The biggest issue is that the big-cap names have turned down and that is causing problems for the indices. Apple (AAPL) , for example, is no longer the star it once was but still carries a very heavy weighting in the indices. AAPL (a holding in Action Alerts PLUS) is trading down 2.5% today and that has a significant impact.
On Aug. 30 I highlighted the chart of PETX. Since then, the stock has drifted around in a trading range but today it is starting to make the move that I was anticipating. It is breaking to a new closing high on above-average volume and I've added to my position.
Typically, a move like this will bring in momentum buyers that chase breakouts on higher volume. I added to my position this morning and am inclined to add more on a solid close.