The lack of conviction | stockbee


The lack of conviction

A last hour bounce resulted in market closing marginally up for the day. But overall breadth was negative. That is a clear sign of lack of big player buying. Any move out of this range need a breadth thrust in either direction.

The big takeaway from the earnings season is clearly the Technology sector earnings. That has led to the sector selling off.

This rally was led by biotech and technology sector for few months now we are witnessing change of guard.
Absent big breadth day we may continue to be in choppy range till a catalyst or pre earnings season arrives for next earnings trends to be clear.
From 401k point of view a 8% plus correction or a severe shakeout will be ideal scenario. 

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