The intense selling pressure that we saw in various areas of the market on Tuesday has lifted, but the bounce action is mild so far. Sometimes, after a period of pressure, there are energetic 'snap back' rallies, but that is not what we have this morning.
What traders need now are some higher highs. The Nasdaq 100 ETF (QQQ) needs to trade over its early highs at $333.14, and a good close would help. So far, there just isn't enough energy to be very convincing.
I put an oil name, Northern Oil and Gas (NOG) , on the radar and may add to some cannabis names like Green Thumb (GTBIF) , but this action is just not strong enough to entice me to put more money to work. Plenty of stocks like this one washed out and have some support, but that doesn't mean they will go up very quickly.
(SPY) is at day low as I write, and the opening gaps are starting to fill. There is not much choice but to stay patient and cautious.