A bounce in the Nasdaq gave the bull something positive but the character of the market action continues to deteriorate. While there was some dip buying in the FAANG and technology names, it wasn't the usual energetic rush. It felt more like a dead cat bounce rather than buying by those that think the uptrend will never end.
Breadth was poor with about 2600 advancers to 4200 decliners and there were more new lows than new highs. Most notably there just aren't many long setups developing. Traders chased a few names like Roku (ROKU) and DaVita Health (DVA) but there were far more big losers than big winners.
It has been a losing proposition to bet against the bulls in this market for much of the year, but for the first time in a long while the tenacity of the dip buyers is being questioned. The S&P 500 and DJIA are still holding up relatively well, but the dynamics that keep so many folks bullish have been shifting.
I constantly write that if you are trying to time the market you have to focus on the price action. There is no doubt in my mind that the price action is turning negative and there is a good chance that will continue. Of course this market has been on the brink a number of times and made fools of those that believe that things were finally shifting.
If you aren't ready for a correction you should consider what moves you want to make if we don't snap back this time. The price action has shifted, and we have to be ready to deal with that fact.
Have a good evening. I'll see you tomorrow.