The indices reacted negatively to Mario Draghi's press conference as he cut European growth forecasts and inflation projections. However, the promise of further stimulus is keeping the selling from gaining momentum at the moment.
The S&P500 dipped below yesterday's intraday lows, which brought in the dip buyers -- but they didn't stick around for long this time. It used to be that such technical breaches would result in the triggering of sell stops, but in this machine-driven market, it is now the place to buy. When that dynamic changes, then we have to be very careful.
The pattern of the action for a while has been for weakness early in the day to be bought and then a strong close. The bears never seem to be capable of building on early weakness, so if they do manage some lower lows intraday and a poor close, that will be a warning sign.
One change today is that the FANG names are weak and breadth is running about 2200 gainers to 3800 losers. Breadth has consistently been pretty good, although the indices have been flat. Today there isn't much momentum out there, but oil-related names are attracting some interest again.
While the upside momentum is limited, we still aren't seeing any major technical breakdowns. Most of the pullbacks are nothing more than routine consolidation at this point. However, we need to watch for lower lows.
I'm a net seller today, but frankly this softer action is what we need to set up better buying points. There are plenty of names I'm still interested in buying like Airgain (AIRG) , Shopify (SHOP) , Global Blood Therapeutics (GBT) and Facebook (FB) and some soft action will make it easier.This market has refused to sell off on central bankers no matter what they may say. That will change one of those days but so far today looks like no exception.