The market suffered a steady drip of selling all day. There weren't any signs of panic, but stocks' downtrend started at the opening bell. They closed near the lows of the day. Breadth went from positive to around 1,900 gainers to 5,450 decliners.
There wasn't any obvious news catalyst for the negative action. The market has already given up hope that a fiscal stimulus deal would be made and there is more exhaustion than fear of Covid-19. It simply looked like a market that has had a big move and needs more rest as we head into earnings season.
Technically, the S&P 500 took out last week's lows and managed to fill the gap that was created on the morning of Oct. 8. It is still above the 50-day simple moving average at around 3,400, which looks to be key support.
So far this action feels more like a routine pullback within an uptrend, but it is important that support levels hold and that the dip buyers don't start to lose confidence. There are still plenty of interesting charts developing, but it is the reaction to earnings that will tell the tale.
IBM (IBM) reported in line with estimates, and is trading slightly lower on the news. It is will be interesting to see how it develops tomorrow as the news is digested.
There still is some hope of a fiscal stimulus deal out there, but this is a market that is focused more on individual stocks. Both charts and fundamentals matter more right now than headlines matter.
Have a good evening. I'll see you tomorrow.