Last hour strength for the eleventh day in a row kept the indices fairly flat but it was one of the choppiest days of actions we have had so far this year. The swings were not big but things moved up an down several times intraday. The bears were unable to build on some minor bouts of weakness but the bulls failed to produce any notable momentum.
One of the more notable issues today was that there were quite a few reversals. The stocks that had the best earnings last night like Zendesk (ZEN) and Paycomm (PAYC) were positive but ended up closing near the lows of the day. Disney (DIS) did even worse and was red at the end of the day.
Momentum also reversed in the marijuana sector which has been the leading momentum group recently. Most of the stocks in that group finished poorly and at day lows although, my Stock of the Week, Pyxus (PYX) did manage to buck the trend.
Breadth was 3-4 negative but there wasn't any rush for the exits. It was more a lack of momentum rather than systematic selling the kept the market contained. Whether this is just a pause that refreshes or the start of a change in market character, we will have to wait to see but the lack of new positive catalysts as earnings season winds down is a concern.
Have a good evening. I'll see you tomorrow.
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Money moved back into big-cap technology names, thanks to strong positive reactions to earnings from Netflix.
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