After the fearful response to the inverted yield curve on Friday, market players settled down and were not quite as concerned about the issue Monday. There continued to be pressure on the yield curve and financials (Financial Select Sector SPDR ETF (XLF) ) acted poorly but much of the focus was on Apple (AAPL) and breadth ended positive for the day.
It was a mixed bag of action with some choppy movement. The big positive was that the bears were unable to build momentum on Friday's sizable losses. The mood was still sour but there weren't any signs of panic.
At this juncture the action is looking like nothing more than a routine pullback of an extended market that hit some overhead resistance. There is still good underlying support at the 200-day and 50-day moving averages of the S&P 500, which are converging around the 2750 level.
It was a mixed day of stock-picking with a few names treating me poorly. Still, my Stock of the Week, Axsome Therapeutics (AXSM) , put on a stellar performance and closed out well. I will be doing some digging for new picks tonight as this action is helping to create some interesting chart setups.
Have a good evening. I'll see you Tuesday.