The indexes continued to levitate to new highs primarily due to the strength in Apple (AAPL) , Lululemon (LULU) , Qualcomm (QCOM) , and a few other big-cap names, but it was a miasma of misery under the surface. Breadth was solidly negative again, but not as bad as yesterday.
However, what was worse was that there was a complete lack of bids in many stocks. Support levels were meaningless, and fundamentals are just something we remember fondly from the distant past.
The question remains: How does this gross inconsistency resolve itself? If there was an easy answer to that, we would already be on the way to a solution, but the gap between the haves and have-nots is only growing wider. The big caps will need to come down at some point, and that is probably what it will take for small caps to eventually find solid lows.
The good news is that there are some great opportunities forming, but if you are impatient in buying them, then you are suffering a world of hurt. I'll discuss my shopping list tomorrow, but the main thing to keep in mind is that there is no urgency to put cash to work. When individual stocks do find support and turn up, the rally will last for a while.
Have a good evening. I'll see you tomorrow.