Test of True Green

Stocks are acting like we are already in the dead of summer trading, with neither side taking particularly much initiative today. Small caps did indeed find buyers "below" this morning, once again. But given the lack upside energy, it is tough to get too excited about $138 on the IWM holding, just yet. 

Apple is running way to the upside in the near-term, and we are still looking to see if suppliers like SWKS can follow suit. 

But what is perhaps more intriguing at the moment is that a few long-term downtrodden names are finally pausing after shooting higher from recent earnings reports.

Specifically, FEYE FIT TWTR became some of the more despised high beta names in the entire market in recent quarters due to how many bottom-fishing longs they obliterated with one new downswing after the next.

However, all three names are taking baby steps after earnings rallies. Twitter, for example, below on the daily chart, is coming in today. If the $17 area, and preferably the 200-day simple moving average (yellow line) can convert into support it will be yet another baby step forward for a long-term reversal. 

Sentiment-wise, from a contrarian perspective all three stocks, FEYE FIT TWTR, are where we want them to be in terms of major turnarounds--These rallies are being met a healthy dose of skepticism by longs who tried one too many times to pick the bottom and are not very interested in doing so this time around. 

More on the market in my usual Midday Video for Members.