When I mention breadth, I am biased by my watch lists. The general market breadth will have many consumer staples, utilities and other such defensive areas so will be different than the universe I am looking at which is more "growthy" and "high beta" in general.
I have multiple watch lists but my main one which are of most interest is about 80 stocks at any one time. There are currently 2 of those 80 positive: Groupon (GRPN), Amazon.com (AMZN). That's a horror show in terms of breadth
Apple (AAPL) is again holding up this puppy as dip buyers came in yet again to fill this morning's gap down (mission accomplished) … Pavlovian response. But now that this gap is filled….
Thought this post from last week was worth reposting today. Today is the first significant sign of weakness on the S&P 500 and NASDAQ as both finally broke their 20 day moving averages. And under the surface the indexes are looking far better than a lot of individual names, some of which are being obliterated today. Tactically it is a 'change' day, as you had to continue to respect the bulls' ability to finding a way to progress as long as they could hold even the weakest of moving averages. If we use Fibonacci retracements we see there is the potential for a substantial amount more of downside to go even if it is not in a straight line. Today there is talk of 'buying the dip' – usually these shakeouts end when there is a real scare and buying the dip is not such a fashionable idea. …
Looks like we are going to see the market's first significant gap down of the year this morning – no specific reason, it is just "due". There have been any number of bears who have been turned to the bull camp in the past 2-3 weeks, but one guy consistently bullish has been well known pundit Laszlo Birinyi, who came out with a S&P 1700 call yesterday on CNBC. It would be easy to say "hey that was an obvious 'call the top' moment" but there have been any number of similar signals (Roubini bullish, uber bullish Barron cover, etc) over the last month which have led to only more pain for bears. Either way it's always good to see the 'other side' of the argument so below is the video:
After raising the market's assumptions about a new round of quantitative easing for months, last week's Bernanke testimony – marked by a tremendous intraday reversal of gold and silver mid week – was the first hint that a massive new program may not be coming…. yet. As the Federal Reserve now loves to telegraph everything to markets well in advance (after of course discussing things with a few 'select firms'), the WSJ's Jon Hilsenrath is one of the main leakage points. In this morning's WSJ he conveys the message that the Fed is watching and waiting – i.e. no imminent action. …
I wrote last week that eventually this divergence between the small caps and large caps had to close. Either the large caps came down to perform more like the small caps, or vice versa. Today it is the former. Finally with Apple taking a break, the NASDAQ and S&P 500 are underperforming the Russell 2000. We still don't have a -1% day on the year for the S&P 500 but at this moment the NASDAQ is testing that level. Both have broken the 10 day moving average intraday (which they did about a month ago) but sit above the 20 day. …