As the market heads into the New York lunch hour, we are looking at a classic faded bounce. This morning’s move up to 1323 on the S&P 500 served as an opportunity for scalpers and trapped swing longs from higher prices to unload inventory. The relatively good news for bulls is that so long as we hold 1312, we will be printing an inside day after yesterday’s big move down. For the meantime, I am not in a rush to make bets either way, as I am watching that 1312 level closely. If breached, I am looking for even more sellers to enter.
Underneath the surface, I am seeing a few more green names that I would expect to see with a failed broad market bounce. Indeed, they are worth monitoring for their relative strength. These stocks include: HHC NFLX OXY QLIK SCHN.
