The indices opened at their highs and have been slowly fading as the folks in the business media slice and dice the Trump tax proposals. There isn't anything surprising in the news, but it is a news event that helps to trigger some volatility.
The actual announcement isn't until this afternoon, but we are seeing some early "sell the news" reactions. As I discussed this morning, this approach has been tough for the bears for a very long time, but technical conditions are good for some selling into the news today.
So far, it is mainly the S&P 500 that is struggling as the small-caps and Nasdaq 100 ETF (QQQ) outperform. Small-caps are being helped by strength in banks that are benefiting from weaker bonds while the QQQ is benefiting from a rebound in the FAANG names and some biotechnology stocks.
On my radar, my Stock of the Week, SolarEdge (SEDG) , is making a breakout move and one of my favorite stocks in the chip sector, Ultra Clean (UCTT) , is back to life. A few biotechnology names such as Halozyme (HALO) and Sarepta (SRPT) are also attracting attention.
There aren't any big moves so far, but the S&P 500 is developing a pretty nasty intraday reversal as I write and that will be important. A poor close in the S&P 500 ETF (SPY) is going to excite some bears. I've been lugging some Direxion Daily S&P500 Bear 3X (SPXS) for a while and have been waiting to add on weakness.