The bulls made a feeble attempt at shrugging off bad news about China trade and Apple (AAPL) orders but they were quickly overwhelmed and unable to regroup for another try. Breadth was around three to one negative and new 12-month lows exceed 400 issues.
Most notable Monday was the bloodbath in FAANG names. Facebook (FB) continues to struggle with management issues and the shortfall in Apple orders drove it to a new recent low. With those two stocks under heavy pressure there weren't any buyers rushing to buy the other big-cap technology names.
Retail, biotechnology, software, semiconductors and most all of the sectors that lead in a strong market were down Monday. Banks and pharmaceuticals showed some relative strength but names such as Pfizer (PFE) and Johnson & Johnson (JNJ) aren't what will lead this market higher.
The bad news is that there is still no good technical support from the indices. A retest of the October lows seems almost too obvious but it is hard to dispute the possibility that it may occur. A full retest will be very painful especially after what we have already gone through.
The good news is that there are some great bargains developing. The charts look terrible right now but eventually this market will find support and the "good" stocks will start to turn up. The best thing you can do right now is identify some that you think you may want to own when the price action improves.
Don't rush to buy anything right now but be ready to move quickly when the time comes.
Have a good evening. I'll see you tomorrow.