Sambuca...or Too Much Tequila

A little Sambuca after a heavy meal is said to aid in digestion. But just as with most things in life, too much alcohol can of course make one sick. 

Thus, after a strong, multi-day bounce in equities dating back to Tuesday morning's upside reversal on the major averages we are now seeing some backing and filling this morning. Indeed, the opening strength was faded as small caps and biotechnology issues noticeably lag 

Then again, bulls will argue that this type of action merely amounts to some Sambuca, or digestive price action in light of the big meal (rally) we saw from Tuesday just when it appeared bears were on the cusp of a making some headway. Bears, however, will argue equities have become inebriated with the awesome rallies in AAOI NVDA this year, among others, and are long overdue for a hangover. 

My inclination, however, is to not to jump to too many conclusions about early morning fades, especially with some prominent earning reports from banks kicking off tomorrow morning and setting the stage for a full-blown earnings slate throughout the next month or so. Instead, we want to gauge whether bulls keep a floor under the small caps while growth stocks can keep thriving. 

If that scenario continues to play out, then it behooves us to focus on stock picking in lieu of being overly-sensitive to every broad market move. 

Elsewhere, it is nice to to see JBLU finally breaching some upside resistance even as DAL is down a bit after earnings. JetBlue continues to be one of the more intriguing airline charts on all timeframes. Holding over $23.30 ought to inspire bulls to sustain a major weekly chart triangle breakout which began earlier this year.