The market did a good job of holding on to the euphoric gains following the midterm elections. There was some minor profit-taking triggered by a negative response to a Fed that is viewed to be on a steady course to raise interest rates but some late buying prevented the selling from gaining traction.
One negative Thursday was breadth running about three gainers to four losers and there was some weakness in small-caps again. Small-caps led to the downside starting in late September and they led to the upside when the bounce started about 10 days ago so it is important to monitor the group as a possible leading indicator.
Typically, a market that experiences a follow-through day like we had on Wednesday holds up well for a while. If a bounce failure is going to occur it will happen pretty fast.
My biggest concern about this market is the action in individual stocks. I still see few good technical setups and it has been very difficult to chase momentum. Strong action from names such as Starbucks (SBUX) and Disney (DIS) are a good sign but there isn't the sort of leadership that the FANG names provided for so long.
The Disney earnings report looks solid and it will be interesting to see if the Action Alerts PLUS holding can gain some traction if it can hold a break out over the $118 level. I'm a buyer.
Have a good evening. I'll see you tomorrow.