The bright spot in Monday's stock market was positive breadth of about 4,250 to 2,975 and some relative strength in small-caps. However, the DJIA and S&P 500 closed at the lows of the day and heavyweight Apple (AAPL) had a poor day with a loss of more than 2%.
While there was green on the screens there was no energy. The cannabis-related stocks and Canopy Growth (CGC) did well and there was some strength in gold stocks but that was it as far as leadership. Technically, all that happened Monday was the market worked off some of the oversold readings but it did it in a manner that didn't provide much upside action.
Tuesday brings earnings from Netflix (NFLX) and IBM (IBM) , which will shift the focus a bit, but I'm afraid we need another downside move to produce a low that holds. There just isn't any worry right now that this market is going to start moving back up with conviction. The fear of missing out is missing.
There are some stocks finding support levels, although they are not turning up yet. At least there are some clear technical levels developing, which provides clear stop points, but there is no upside momentum.
There is no choice but to stay patient and wait for the action to develop further. I have a few favorite names I want to add but I will do little until there is more energy.
Have a good evening. I'll see you tomorrow.