The markets closed off their lows of the day however the action was awful as participants sold first and asked questions later. Breadth finished mixed, being negative in the NASDAQ and positive in the NYSE. Something we don't like to see as defensive names are clearly seeing the money flow.
We did very little today not feeling comfortable selling into the panicky action nor shorting stocks that have already been beaten down very hard. Furthermore it did not feel right to venture out on the long side for anything more than a short term trade or very small nibble.
As we mentioned earlier, the markets are heading into earnings season in a very sour mood which may bode well should we see any positive news flow at all.
The S&P held the 200 day moving average today while the NASDAQ found support right on the trend line started from the June low. If this sticks, this would represent the third higher low and bode well for this average to challenge 2200.
For now we remain patient and await better
opportunities.
Have a good evening.