In Context for the Afternoon

The lagging Nasdaq is red as I write this, though the small caps in the Russell 2000 Index are soundly in the green. Either way, stocks are still well off session highs as we work our way through the early-afternoon portion of the day.

I am looking to see if buyers step in for another thrust higher, as they have often done with these lunchtime fades. Names like FIT GPRO, for example, which are long-term laggards now trying to wake up, are still near session highs and not flinching much into this market fade. 

Another reason for the small cap outperformance may also be the XBI action which we discussed previously, since plenty of those smaller biotechs are housed in the Russell themselves. 

To take a step back and gauge the market for general context, the S&P 500 Index hourly chart, below, shows this is a good spot for buyers to try to make a stand into the late-afternoon.

This chart shows the gap down two Fridays ago, which has since taken on a sloppy consolidation feel. Bulls tried to clear 2150 again today on the S&P cash but were unable thus far to hold above it. So, that becomes a pretty good reference point going forward to gauge buyers' test of mettle. 

We also have some new ideas shaping up across several markets, which I will update for Members in my usual Midday Video.