Replenishing After a Busy First Hour

An abrupt rug-pull off a green open this morning sees most stocks in the red now. The problem spots in the market, namely the small caps, financials, energy stocks, and biotechs, continue to struggle and are likely serving as at least an excuse for Nasdaq bulls to lock in some end-of-month gains on the final day of May in the likes of AMZN GOOGL. 

As I write this, I see dip-buyers are giving it a shot to trace back up to the opening highs, though we still have a bit to go before that happens entirely. I am looking to see if sellers make another push down today to new session lows, which may be a development that casts some doubts in the minds of buyers who assume this is just another buyable dip. Just as we always do, inside Market Chess Subscription Services into red markets we identify the best relative strength stocks for Members, so that we are armed with some of the more enticing charts if and when the market snaps back. 

In the meantime, it seems as though the glaring small cap and financial weakness is worth watching closely: IWM vs. $134 and XLF vs. $23, to be precise. 

But, then again, those levels are incredibly obvious at this point to just about anyone who so much as glances at a chart. 

Thus, not rushing to any conclusions based on the first hour of trading, on the final day of May, is likely correct.