The Nasdaq managed some strength today due to some positive action in the FAANG names and Apple (AAPL) in particular but breadth was negative once again and many small caps were brutalized. The extent of the weakness can be seen by the number of stocks that hit new 12-month lows which was around 650 versus just 40 new 12-month highs.
If you are looking for a positive spin the best thing that can be said is that the pace of decline slowed in some stocks. However, the big problem is that buyers have no sense of urgency. They are not at all worried that this market is going to run away to the upside. Dip buying seems like a quaint old custom that has no place in the current market.
The good news is that many stocks have been so beat up that they are starting to find some support, however there are very few charts of interest in this mess right now. Just because a stock is not going down as much doesn't mean it is a good buy setup.
On Tuesday morning we'll have two very interesting earnings reports from Caterpillar (CAT) and 3M (MMM) which should provide some insight into the corporate view of the economy. One of the big positives for this market has been the narrative that economic growth is very strong. It will be interesting to hear how industrial America views that issue.
This is a extremely poor market but we have some big earnings report coming up which are the best chance for a bounce. The optimistic view is that either they are good and bring in buyer or they are bad and are fully discounted and quickly hit a low. Even if you are optimistic the price action out there is so poor there is no reason to do any buying right now.
Have a good evening I'll see you tomorrow.