Holding Pattern

News is bad but the market continues to churn at this level. There has not been a undercut of the June 4th low as of now.

Some stocks have dropped to levels from where there is no more selling. B ut at the same time the rank of stocks that are holding up well keeps on declining as more stocks continue to breakdown.

There has not been a panic during entire duration of this move. Sentiments have bounced back quickly from bearish side. The AAII Investor Sentiment Survey is not at extreme level. There has been 6% jump in positive sentiment in last one week. Investor intelligence survey is also not in extremely bearish territory. In fact it is in bullish territory with 37% of manager bullish to 27% bearish.

At this stage one of the positive for the market is it has held up well considering the backdrop of the constant bad news.