The fact the market exhibited the same traits as yesterday shows signs of tiredness and reason to be mostly sidelined. Once again after briefly touching resistance at 1246/1247, the market for a second consecutive day failed to break through and sold off. That’s red flag #1 and other is the selling in this year’s momo/winners we’ve been noting, picked up steam as alerted at the open and there was no reversal in sight all day. This aspect is also spreading from the usual suspects to other earning winners.
There is really no solace in the fact the broad market is holding up, the stocks keeping it up are of no trading interest. Until, the 1246/47 zone is breached and/or the selling dissipates in the momentum stocks, investors/traders want to preserve gains instead of trying to find a bottom in individual stocks or chasing anything on strength.