One of the best signs that the market or a stock might be finding a bottom is when it doesn't go down on bad news. That is an indication that the negatives have been already fully discounted and there aren't any significant sellers left to cause pressure.
Unfortunately, that dynamic is NOT at work Thursday morning. Although Apple (AAPL) is already down 35% from its recent highs, it is down even more on news of its revenue shortfall. That is causing pressure on the indices, but poor ISM numbers are causing further pressure and the S&P 500 is taking out Wednesday's lows and is seeing some strong downside momentum.
One positive from the poor ISM number is that this is an additional reason the Fed should not be in any rush to hike rates again. The ADP jobs numbers were strong but that usually isn't regarded as important as the non-farm payrolls number, which is due Friday.
The big problem this market faces technically is that there isn't much support down to the lows we hit on Dec. 24. If that level is retested it is going to cause some real misery but it is long and ugly drop before it comes into play.
Breadth is very poor with about 2,100 gainers to 4,700 losers and the number of new 12 month highs and lows is not significant.
One slight positive on my screens is that there is a little better action for stock pickers. The planned Celgene (CELG) acquisition by Bristol-Myers (BMY) is helping to put some bids under biotechnology, which has suffered far more than other sectors and is starting to bounce better.
I'm interested in a few bottom-fishing plays in biotechnology primarily, but am still staying extremely patient. As I often write, the idea isn't to buy the bottom but to buy when there is the best chance of a sustained trend.