After a respite on Monday, the selling pressure on growth names and the FATMAAN technology stocks, in particular, resumed this afternoon. The Nasdaq 100 fund -- the Inveso QQQ (QQQ) -- led to the downside with a loss of 1.27%, but it was a poor day for the entire market with breadth running 2,700 gainers to 4,600 decliners. Technology, biotechnology, energy, and consumer cyclicals declined while retailers saw some inflows. Banks didn't do much even with news headlines that Warren Buffet was adding to a position in Bank of America (BAC) .
Advanced Micro Devices (AMD) has been a leader lately and is up tonight after a strong report. We will see how well this holds, but is a good test for growth names.
The selling is broadening a little and the speculative trading is narrow, but whether that is just some health profit taking or the precursor to more aggressive selling is hard to say. The market can afford some rest and resets without doing any major technical damage but the bears are going to continue to focus on a long list of negatives that they are convinced will lead to substantial downside.
This is a more challenging market environment right now but that isn't all bad. We need some variation in market activity to set up the next round of opportunities.
Have a good evening. I'll see you tomorrow.