It was another challenging day for the markets as the senior indexes finished negative on another weak close. The bright spot was the Russell 2000 fund (IWM) , which finished with a gain of 0.56%. That strength was reflected in breadth, which finished with about 4,500 gainers to 3,600 decliners. There were more new lows and than new highs, which illustrates that stocks are primarily still at the bottom of the recent range.
Bonds -- as seen in the bond exchange-traded fund TLT (TLT) -- bounced, and the dollar ETF UUP (UUP) was strong, which is interesting action in front of the consumer price index report Wednesday, which is making some stock market participants nervous. The obvious concern is that a spike in CPI will raise inflation concerns and cause more pressure, primarily on the big cap growth and FATMAAN names. The market has been dealing with this issue for a while, so what we will see is some measure of how much of the concern is already discounted.
After the close, Apple (AAPL) indicated that it is cutting iPhone production due to chip shortages. The stock is down about 1% on the news, but this is likely to be a recurring issue as we head into earnings season. The chip sector is quite poor already and is close to breaking some key support.
While it was a generally poor day overall, there was some constructive action in individual stocks, and the positive breadth is a good sign. I continue to watch for better chart setups in the weeks ahead.
Have a good evening. I'll see you tomorrow.