The indices closed solidly negative following poor earnings news from Caterpillar (CAT) and Nvidia (NVDA) but not at the lows of the day. There wasn't much bounce off the intraday lows that hit around mid-day but the good news is that the bears were unable to generate sustained downside pressure.
Breadth was poor but the Russell 2000 ETF (IWM) exhibited some relative strength which helped the tone of the action. Marijuana-related stocks were the one bright spot on a day that was devoid of many upside moves.
It is likely that the bears were unable to put more pressure on the indices due to hope that there may be something positive coming from Apple (AAPL) earnings and from the Federal Reserve interest rate decision on Wednesday.
Technically the indices are holding above some key technical levels such as the 50-day simple moving average of the S&P 500 at around 2,612. The upside bounce off the December 24 low has slowed but that may just be healthy consolidation. We just won't know until we have a bit more evidence.
There is no doubt that the earnings news today was poor. That produced some selling but not a big rush for the indices. The price action is shifting but isn't negative enough to embolden the bears. Look for a day of mixed action tomorrow as we await Apple's earnings report
Have a good evening. I'll see you tomorrow.