Holiday Hangover Slowing Things Down

Despite a hefty premium for the CPXX buyout by JAZZ, and CLF surging on the deal with MT, upside momentum in the broad market was initially blunted out of the gate this morning. 

AMZN is still acting well among leaders, but other names like CMG may be vulnerable to cracking again, on top of some glaring relative weakness out of MCD SBUX. 

Regarding the indices, it is hard to be surprised with some initial fading given that the small caps are back up to the critical $115 level, which has been well-defined resistance since at least last December on the IWM (ETF for the Russell 2000 Index), below on the daily timeframe. 

Bulls, as we know, have done a good job quickly recovering from any bout of weakness of late. But month-end markups essentially done now, they will need to step in again fairly soon as we head into the seasonally-tough month of June.