For the second day in a row, the bears attempted to reverse the indexes into negative territory, but were unable to build on the selling pressure. The close Thursday was not as strong as on Wednesday, but it was a decent bounce on the Nasdaq, with FAANG names leading once again.
Breadth was poor with around 1,950 gainers to 5,400 decliners, which is reflected in the poor performance of the Russell 2000 small cap index (IWM) which dropped near 2%. IWM did manage to hold right at its 50-day simple moving average, but it is looking technically weak here.
Another group that looks very poor is banks. The SPDR Select Sector Finance fund (XLF) fell under support and looks very poor. Big banks will kick off earnings season next week and based on the charts it is safe to say that expectations are quite low.
The good news from a trading standpoint is that there is still some good action to be found. A couple of names I mentioned today are good examples. Virgin Galactic (SPCE) moves out of a base with a 15.9% gain and OneConnect Financial Technology (OCFT) blasted 19.8% higher to a new all-time high.
The speculative trading has narrowed, but there are still plenty of good opportunities if you dig for some new setups and manage the trades well.
The big picture is murkier, but there still is no major technical breaches. The bears can't deliver downside momentum, but the bulls are not quite as aggressive right now.
Have a good evening. I'll see you tomorrow.