After being slammed on Friday, market participants are looking for some bounce action on Monday morning, and so far, it is not looking too good. There was some minor buying after the gap-down open, but the S&P 500 was unable to close the gap, and now the early lows are failing to hold.
Breadth is running 2250 gainers to 5650 decliners, and the number of new 12-month lows is slowing, expanding to around 225. That is still quite low, but we need to watch that level closely as it will be an indicator of the potential for a retest of the June index lows.
There is some interest in uranium, oil, and energy due in large part to the growing shortages in Europe. There are few other pockets of speculative action, with just 20 or so names trading up more than 10%.
The problem for the market now is that it has to wait for more economic data to help signal what the Fed will do next. Jerome Powell made it quite clear that the Fed is going to stay intently focused on inflation and is not going to back off until it has sufficient economic data to show that there is a clear change in the trend of inflation and growth.
This is a tough juncture for the market, and it is struggling to find support, and there isn't any significant economic data for a couple of weeks. While stocks were hit hard on Friday, they are not near major support levels.
I have a few small oil trades, such as Kosmos Energy (KOS) , Indonesia Energy Corp (INDO) , and Northern Oil and Gas (NOG) , and I'm looking at some uranium, such as Energy Fuels (UUUU) , but I see little to do right now as technical conditions develop.