Super Tuesday Followed By Wishy-Washy Wednesday

Bulls avoided what could have been some ugly overnight action on the back of a sell-the-news reaction yesterday to the Fed's emergency rate cut. The financial news headlines point towards Joe Biden's Super Tuesday success as the main catalyst for this morning's rally in equities. But regardless of the actual reason we have a decent though unspectacular bounce taking place thus far.

The reason why this bounce is respectable but not dazzling yet is because on every major index, be the Dow, Nasdaq, S&P, even small caps, today's price range is well within yesterday's big red reversal candles and not overpowering them. That may change if we see buyers gather steam throughout the session and we squeeze shorts.

At the moment, though, the most impressive action seems to reside in the biotech sector, once again, more than anything else. Various XBI ETF names which have been holding up well with firm charts are back at it and trying to ignore virus headlines (or, in some cases, benefit from those headlines if they have vaccine exposure, for example, like TWST) to break higher. KDMN has been a stealth mover and keeps sporting a strong chart on all timeframes. Note the stock at upper range resistance and on the cusp of a major breakout if the market cooperates. 

Overall, biotech is the main sector I am willing to mix it up in today on the long side as software will likely be sensitive to both SPLK and ZM earnings tonight after the bell. As far as thinking the broad market bottom is in place, once again today's candles thus far on the indices are "inside" days and inside yesterday's range, meaning we ought not presume too much insofar as us necessarily bottoming yet.