Market Is Holding Its Own Against Several Headwinds
Here's when it may be time to worry, however.
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Another late-day spike limited the damage, but it was another poor day for the broader market. Breadth was poor, with around 4,000 gainers to 5,300 decliners, and both the DJIA and Russell 2000 finished in the red. Big-cap technology led the day and pushed the Nasdaq 100 QQQ up about 0.5%.
The biggest gainer in the Nasdaq 100 was Nvidia NVDA, with a bounce of about 4.8%. Market players still tend to view many of the Magnificent Seven names as "safe" when the market is acting poorly, regardless of their valuations.
The market’s primary problem right now is that there isn’t much news flow. There is a Jobs Opening report on Tuesday and some ISM numbers on Wednesday, but there isn’t anything that will have a big impact on inflation or economic expectations.
We continue to have pockets of speculation in smaller stocks, but the meme trading was a dud again as GameStop GME failed to gain any traction despite the hype. There are reports of possible market manipulation that hurt the stock late in the day.
Despite poor action under the surface, both the Nasdaq 100 and S&P 500 continue to hold up very well and are just a few ticks from new all-time highs. The DJIA and Russell 2000 are lagging but are still holding areas of key support.
The buying in the last 30 minutes of trading is helping quite a bit, but that is likely a function of the calendar, and conditions will shift on Tuesday. If we start seeing weak closes, then it will be time to worry.
Have a good evening. I’ll see you Tuesday.
At the time of publication, TheStreet Pro Portfolio had no positions in any securities mentioned.
