After the sizable intraday bounce on Tuesday it is tempting to proclaim that the health of the market is improving. But while the action is mild so far today there continues to be a lack of confidence. Market players are still feeling quite uncertain, which is reflected in the price action. Weakness in the Russell 2000 ETF (IWM) continues to be very worrisome. There just isn't any good support there yet.
Breadth is running just slightly negative and the number of new 12-month lows has slowed to around 200, but earnings news is still not attracting interest. There is Boeing Co. (BA) and a couple other names that had very solid reports and are seeing some interest, but it is not spilling over to the broader market so far.
A good example of how poor earnings have been is Texas Instruments Inc. (TXN) . There is no mystery about what is happening there. The semiconductors have hit a cyclical peak and the market is trying to figure out how much things will slow. What is a little surprising is that expectations haven't already come down further.
Texas Instruments is off its early lows, so there are some market players who hope the worst is discounted now. I have no confidence that is the case based on its chart and would avoid the stock at this point. Trying to catch a cycle low in a group such as semiconductors is tough, and it is even tougher when the turn is still in an early stage.
I'm doing little this morning, but I did add to a position in Corbus Pharmaceuticals Holdings Inc. (CRBP) , which has been in a trading range recently and got an initial buy and $22 price target from B. Riley FBR Wednesday morning.
There sure isn't much of interest out there. We need stock picking to improve before we can have more confidence in this market.