The indices are being jerked around on some news headlines today. The action was looking quite poor until about 10.30 a.m. ET when a report hitting the U.S. was looking to restart trade negotiations with China before tariffs went into effect. There was also some reports of dovish comments from Fed members.
These headlines trigger very obvious "buy" algorithms that took the indices into positive territory. However, when a move is computer generated it doesn't tend to hold well and that was the case here. Within about 30 minutes the move was totally reversed but some buyers have remained and have the indices off the lows.
That algorithm action shook things up and helped to push breadth to even. But there is still plenty of poor action in chips, financials and small caps. This action is primarily index driven and is narrow.
The Apple ( AAPL) new product event is starting now and there is a slight "sell the news" reaction. The news seem to be well anticipated and isn't generating the same level of excitement we've seen in prior events. Short term Apple is mixed technically. It will need to recover the $225 area to attract momentum buyers again.
I've mentioned Sarepta ( SRPT) quite often recently and took some partial profits on a spike over $150 today. This is a stock i want to own longer term so it is always tricky to try to catch dips but I will hold a partial position and that will help keep my alert.
Overall I do not like the action much in individual stocks. Thear are a few things working but the majority of my screen is red and I'm selling some fairly sizable dips in small caps I follow.
Corrective action in this market is often quite hidden but it can add up fast if you are in the wrong stocks.
