It was another mixed day of action with the major indexes closing near the lows of the days, but small caps exhibited some relative strength that helped breadth improve steadily to around 4,700 gainers to 3,100 decliners. The pockets of momentum improved during the day, and at the finish, the speculative stocks were looking better.
Two issues hurt the general market today. First, the reaction to earnings -- except for Alphabet (GOOGL) -- was generally poor. The stocks did gap up, failed to hold very well, and those that sold off did not bounce.
The second issue was comments by Fed Chief Jerome Powell. He essentially stated that everything is great, but not so great that the Fed will stop buying $80 billion in bonds each month. That spiked the market to the day's highs, but the gain was reversed on a few comments about how bond buying would not last forever.
We have another bout of earnings landing: Facebook (FB) is doing what Google did Tuesday and is blasting higher on great numbers. There are other stocks with negative reactions to earnings, but we will have to wait to see what Apple (AAPL) brings to the party.
Overall the action has been mixed lately, but that isn't a bad thing. It helps to create some better chart patterns and works off overbought conditions in place. The poor reaction to some good earnings news is problematic, but it isn't severe enough to be a major problem.
We'll see how Facebook and Apple fare after the earnings news is digested. As long as they don't suffer a sudden "sell the news reaction" conditions remain good.
Have a good evening. I'll see you tomorrow.