Leading stocks have been pulling back into logical areas of support and, for the most part, they have been hanging in there, names like OPEN, NTAP, NFLX, CRM and LOGM. How these and others behave will probably dictate where the market goes from here. If we trade below Monday’s lows and some of the aforementioned names begin to fall apart on big volume, then I would assume that a test of the 50dma is in the cards, at the very least; however, if that test were to occur on low volume that would actually be quite the positive development. Some of the stocks hanging tough at the moment:
Having said all that, it wouldn’t do to ignore the GMCR, CYBX and MELI’s of the world, so it pays to appreciate the entire canvass. The wildcard, to my mind, remains the financials. Notice how JPM was rejected at its 50dma. That being said, C isn’t looking half bad…for C, that is. Perhaps it is telling us something….
Disclosure: Long, BIDU, CRM, DGP, NFLX, PCLN, ROVI, RVBD