The selling pressure from Wednesday has continued this morning, but there are some dip buyers trying to catch turns. Breadth has improved to around 3400 gainers to 4600 decliners, but new 12-month lows have expanded to around 750.
Small-caps (IWM) and the Nasdaq 100 (QQQ) are leading so far. Those two groups were hit the hardest yesterday and were the most oversold, so it makes sense they are seeing a better rebound.
The biggest challenge of this market is that S&P 500 is still only a few percentage points off its all-time highs, while many individual stocks have been buried in a bear market and actually look like they are crashing as bids disappear.
A good example is IonQ (IONQ) which has a very hot SPAC focused on quantum computing. It has dropped from $35 to around $15 in about six weeks. That is bear market action, and this morning bids disappeared, and it was down around $1 before bouncing.
There are hundreds of stocks with charts like this that look nothing like the indexes. The question is can they find a bottom and turn up while the indexes are still in an early stage of correction?
I don't know the answer to that, but many stocks are looking oversold in view of their longer-term prospects, but they need better price action to attract buyers.
