Breadth is solid at a little less than 2 to 1 positive and the indices are holding up well but there isn't much strong momentum. FATMAAN names are just slightly positive and the IBD 50 names are flat. There are some pockets of strength in small-caps but my list of stocks moving up more than 10% is fairly short.
One name I'm trading is NIO, Inc (NIO) . The stock received an upgrade and a $40 target this morning from JPMorgan. The analyst previously had a neutral rating and a $14 target so the stock is very strong on the news. This is the sort of stock that is likely to be chased as it is in the hot EV sector, has an attractive price point around $25, and very big upside into the target. I'm playing the chasing game and have added NIO.
There are some signs of an intraday reversal in the S&P 500 (SPY) that I'm monitoring. If SPY breaks yesterday's low $349.09 that will trigger some stops and make it likely that the gap down to $347.50 is filled. Keep on eye on that pattern. With the weak momentum today the potential for profit-taking is increasing.