The indices fought back from an intraday selloff but for the second day in a row they closed lower than they opened. What was most notable about the action today was that despite some good earnings reports there was selling pressure in the indices. IBM (IBM) , United Technologies (UTX) and Procter & Gamble (PG) held on to most of their gains but it didn't spill over to the broader market.
On the other hand, the bears didn't build much downside momentum despite the intraday reversal. Breadth was close to even and the indices finished the day around flat.
The government shutdown continues to suck up a substantial amount of attention. The battle intensified and there are still very few signs that progress is being made. As I discussed earlier, there is potential for a sharp spike higher on any news that a deal might be made and that is likely keeping the bears at bay.
There are some earnings reports hitting in the technology sector and so far the responses are quite strong. There is a better chance that strength in semiconductors will boost the overall market so we'll see how that works out tomorrow.
Technically the market is still extended and in need of consolidation but the two days of weaker action are helping in that regard. I expect the market to develop a trading range from here but should the lows that were hit yesterday and today be tested the selling could pick up quickly again.
Have a good evening. I'll see you tomorrow.