After a strong bounce on Wednesday, traders were nervous about upside follow-through and locked in some gains.
The selling continued for about an hour, but the recent lows were never tested, and the buyers regained some confidence. Buying picked up, and the S&P 500 managed to recoup the day's gains before some minor selling at the close.
Breadth was mediocre at around 3,600 gainers to 4,400 decliners, and the indexes were flat to down, but there was some good stock picking under the surface, and a large number of individual stocks were up more than 10%.
The special purpose acquisition sector was of particular interest to the hot money traders, but the best news is that we don't have correlated selling. Although it has been a bumpy ride for a couple of weeks now, there continues to be plenty of retail interest. Some may dismiss these speculative stocks as "worthless geegaws," but they illustrate that there is some aggressive money out there looking for a place to go. That is a positive sign for better trading at the end of the year.
The market is still vulnerable to more corrective action, but this has been playing out in a very healthy way, and I don't expect it to go too deep. We still have to deal with negative seasonality for a while longer, but this market action is developing very well.
Have a good evening. I'll see you tomorrow.