For the second day in a row the indices are seeing some minor selling and are drifting lower. Breadth is running about 2 to 1 negative today and the number of new 12-month highs is a paltry 65.
Despite the lackluster action there are some pockets of good stock picking again. Biotechnology and cannabis stocks are showing some life as well as a few technology names like Datadog (DDOG) and Palo Alto Networks (PANW) .
This is exactly the sort of action that bulls like to see in a trading range. While there is some systematic profit taking there is also some speculative stock picking taking place. This suggests there is still a good amount of buying power on the sidelines that is biding its time before it jumps in.
Next week traders will be watching to see if this week's highs are tested gain. If they are then the chances of a breakout are good. If the momentum weakens or there is negative news flow that matters then watch for the gap that was formed on Monday morning to be filled quickly.
A number of recent picks are perking up nicely today. Ocular (OCUL) and Inseego (INSG) are two that I've been focused on and they are both moving. Other names such as gambling play GAN (GAN) , cannabis play Neptune Wellness (NEPT) , and biotechnology names Schrodinger (SDGR) and Biohaven (BHVN) are acting well.
This overall market is looking quite dull but the action under the surface suggests that a bigger move is brewing and is likely to be on the positive side.
