For the 12 days in a row the buyers stepped up in the final hour of trading but it wasn't enough to take the victory away from the bears. Heavy selling pressure persisted for most the day and the bounce at the close was too little and too late.
Breadth was quite poor with about 2,100 gainers to 5,100 decliners but this wasn't a selling panic. It was just some profit taking in a market that has run up too much and was both overbought and hitting resistance levels. The folks that root for the market to go up every day didn't like it, but this is what a healthy market does. We need some ebb and flow so that weak holders can exit and stronger hands can buy.
After a day like this there is a tendency for many of the bears to become too excited and to start predicting doom and gloom. We really can't blame them when they have had so little success for so long but there isn't reason to believe at this point that the uptrend is dead and the market is going to fall apart from here. That might happen but there isn't any strong evidence to support that view at this point.
Nonetheless the prudent thing to do is to tighten up stops and to be aggressive in cutting stocks in which losses may be accelerating. We are at a juncture now where management of positions is the most important issue.
We'll see tomorrow if the bears can build on today's success. The narrative today was weak economic growth in Europe and lack of progress on China trade. Both those issues are likely to persist but the question is whether the market cares or not.
Days like today make me more bullish than the straight-up days since the create more new opportunities. All those stocks that were technically extended yesterday are not so extended today.
Have a good evening. I'll see you tomorrow.