Once again the bears squandered an opportunity to put pressure on the indexes. Home Depot (HD) and Kohl's (KSS) gapped down at the open and remained under pressure all day. Both stocks closed near their intraday lows. This weak action pressured the retail sector, but the rest of the market ignored the sector.
Breadth was good with around 4,300 gainers to 3,100 decliners and there was some particularly perky action in biotechnology. The Nasdaq managed to lead even though Apple (AAPL) had a rare day in the red. Small caps were the leaders, which is why breadth was good.
One notable statistic that should trouble the bulls is that the ratio of new 12-month highs to new 12-month lows is very low. There were 550 new highs, which isn't that great for a market hovering at new highs -- but, more surprising was that there were 250 new lows. Sectors like master limited partnerships, oil, and cannabis keep hitting lows, which is part of the reason, but it illustrates that this not a broad market rally.
The dip buyers continue to do their thing, but the close was weaker Tuesday, which is a slight shift in character. Market timers are watching very carefully for signs that the market is at a turning point and there still is no hard evidence. Talk about sentiment being giddy or euphoric is having no impact, and the constant underlying bid is not weakening.
There is always a temptation to try to anticipation a market turn, but if you are a reactive trader, like me, there is still nothing negative in the price action to react to. There actually was some good pockets of strength today that are hard to ignore.
Have a good evening. I'll see you Wednesday.