All of the indexes were able to close in positive territory today, but momentum slowed steadily, and the close was weak.
Breadth held up well at two to one positive, and there were almost 600 new 12-month highs, but there were many intraday fades, and few stocks closed strong, especially among the small caps.
Traders saw similar action last week when small caps and growth stocks bounced strongly as the Dow Jones suffered a significant hit, but the action reversed several days later, and the indexes were hitting new highs again on poor breadth.
The action today wasn't that poor, but this market has been a struggle for small-cap and growth stock traders for months, and they are easily discouraged when a long-awaited bounce does not gain sustained momentum.
We have a very busy night of earnings coming up. Amazon (AMZN) numbers are up, and it is taking a 5% hit on a revenue miss and reduced revenue guidance. That is pushing the Nasdaq 100 (QQQ) into negative territory for the day.
Earlier this week, I discussed the thesis that a "sell the news" reaction to the FATMAAN stocks maybe what we need to trigger a better rotation into other areas of the market. It looks like Amazon is going to give us another opportunity for that possibility.
This is a tough market, but there are a number of catalysts hitting to shake things up.
Have a good evening. I'll see you tomorrow.