The dip buyers showed up slightly before the open and had the S&P 500 in the green, but they didn't stick around for long. Trapped bulls used the opportunity to sell into the strength, and the indices were quickly back in the red.
We are dealing with a market and many stocks that are struggling to find support. The recent action has made dip buyers less confident, and there are some technical support levels that are breaking and triggering sell stops.
Breadth isn't too bad but what is most notable right now is how the pockets of strong momentum have disappeared. I currently show only seven stocks up more than 10% today, and many small-caps appear bid less. This market is not bailing out buyers.
Another major problem is the pressure on the ARK ETFs, ARK Innovation ETF (ARKK) has downside momentum building, and that is pressuring many of the recent favorite names. ARK's strategy is to liquidity more liquid names and stick with higher-beta secondary names, but when there are continuous outflows, the selling will take a toll on everything.
I see quite a few stocks I like, but there is no support right now, so I'm not doing any buying. Speculative small caps are getting hit hard, and there isn't much to do but wait for some support levels to form. The goal isn't to catch the bottom tick but to catch a sustained upside move.
