It was another dull day of trading Monday with a negative bias, although the indices bounced back into the close and no major technical damage was done. Breadth was poor with about 2,875 gainers to 4,250 decliners but what was most notable was how slow and dull the action was.
There was no standout leadership although Disney (DIS) did a nice job of following through after a big day on Friday.
Bank stocks were weaker after a negative response to the Goldman Sachs (GS) earnings report but there was no major rush for the indices. While the FAANG names did little and small-caps lagged the indices remain above key support areas.
The bulls' spin on this action is that the market is simply consolidating gains after a big run and should be ready to go after some rest. The bears' spin is that the market is starting to stall and there is some worry and concern drifting into the action. Rather than a pause that refreshes bears view this action as a warning that things are deteriorating.
At this point I see no reason to jump to any conclusions. The trend is still up and although the action is slow and random there is not a notable change in character. We have more earnings reports coming and they will help determine where things are heading.
Have a good evening. I'll see you Tuesday.