Precious metals are leading this morning and there is some life in optical stocks, but pressure on oil and biotechnology is keeping the indices down. Breadth is running around 3-2 negative and leading names such as Alphabet (GOOGL) and Facebook (FB) are not doing anything. (Alphabet and Facebook are both holdings in Action Alerts PLUS portfolio.)
Obviously, the recent poor action has taken a toll on sentiment and is preventing dip buyers from doing what they had done for so long. That is particularly ironic given that the Federal Reserve's interest-rate decision is later today. Confidence in the central banks is what has so often emboldened dip buyers. Now we hardly have any discussion at all about Janet Yellen and her crew. They are being overshadowed by the election and no one expects them to do anything significant a week before American go to the polls.
The market is oversold and there is a general tendency for a positive response to Fed decisions so I'm looking for a bounce. I've started a small position in ProShares Ultra S&P500 (SSO) and will look to build that as it develops.
Another play I'm watching today is Facebook, which announces earnings after the market close. There seems to be quite a bit of nervousness about the results and I'm still debating to what degree I want to hold the shares. Facebook had the best report of all the big-caps last quarter and the chances of another good beat appear high.
Overall, this market remains in very poor shape and I don't trust a bounce to last for long. Until the election is over it just isn't prudent to have a high level of confidence in anything.