The trading action Monday morning is brutal as an already skittish market reacts to Apple (AAPL) supplier Lumentum (LITE) cutting its guidance significantly. There already were concerns about sales of Apple's new iPhones and this news is cementing the negative perception.
This poor price action is keeping those with dip-buying inclinations on the sidelines. There is some particularly weak action in small-caps that have gone bidless as bargain hunters are not seeing any signs of support.
Breadth is running about 2,500 gainers to 4,100 decliners and new 12-month lows are exceeding new highs again. What is most troubling about this market is the lack of any bounce action at all so far. Brave traders who are trying to catch falling knives and safes are suffering some ugly injuries.
I see plenty of names I would like to buy when they find support and turn back up. However, I am not going to touch them right now.
This is the sort of market where you have to focus on capital protection. The opportunities will be there, but impatience is your enemy right now.