It looked like it was going to be a quiet day, as program trading was at its lowest level so far this year, but breadth was nicely positive and there was some good bounce action, so the bulls decided to buy them again.
The indexes closed near the highs of the day and breadth finished at 4,700 gainers to 2,700 decliners. The Nasdaq 100 managed a very healthy gain of 1.8% and the worries about the FATMAAN tech names were quickly forgotten.
This action is a good example of how the bears are incapable of gaining any downside momentum. There wasn't any positive news to drive buyers and there are plenty of reasons to have some concerns about the upcoming news flow, but the fear of missing out continues to dominate market sentiment.
While the bears continue to moan and complain about how just a small group of big-cap names are driving the indexes, it is a much more attractive story under the service. Good charts still exist and there are plenty of names that aren't widely overvalued or grossly extended.
This continues to be a stock picker's market, and if you are flexible, then there are stocks to pick. It is a frustrating environment for someone trying to time the S&P 500 fund (SPY) because there isn't any sustained downside momentum. If you catch a day a weakness you are doing a great job of timing lately.
There are lots of earnings coming up and the bears look like they are stuck leaning the wrong way yet again. Stick with what is working until it isn't working.
Have a good evening. I'll see you tomorrow.