We have some uncertain and nervous trading Thursday morning as market players digest the earnings responses to Netflix (NFLX) , IBM (IBM) and a few others. Netflix isn't seeing much interest from dip buyers but IBM recovered very well after a negative start and his helping to hold up the DJIA.
The Nasdaq and Russell 2000 ETF (IWM) are lagging, which is reflected in breadth that is approaching 2-to-1 negative. There are more new 12-month lows than highs Thursday morning for the first time in a while. My scans of the market for strong moves on increased volume is yielding little.
It is likely that expectations for a strong report tonight from Microsoft (MSFT) will help to keep some bids under the market. I don't expect to see the bears and shorts press too hard right now but there isn't going to be much upside momentum.
I'm doing some very short-term trading and don't see anything much I'm interested in building right now for position trades. Precious metals are in need of a rest after a furious run and there really is no sector leadership outside that, although semiconductors is exhibiting relative strength.
My Shark Technical Pick today was Invitae Corp. (NVTA) , which is seeing some interest after a buy recommendation yesterday from Citron.
Stay selective and patient as this market looks for direction.