So What?

Does it matter if market leaders, some of the biggest market cap stocks in major indices are tanking? Does it matter if earnings and guidance are, more often than not lately, disappointing? Do the algos even care, or are they perhaps mesmerized by the fact that VIX is back below its 200 DMA? How excited might they get if it slips below horizontal support at 16?Meanwhile, the bond market — which might ordinarily be nervous over this morning’s strong employment report — is correctly concerned about inflation that’s too low. As we’ve discussed often over the past 4 months, the sharp slide in gasoline prices has knocked the legs out from under inflation concerns and, therefore, the rationale for interest rate hikes.

Yes, AMZN is stumbling this morning. But, like AAPL, it was careful to stumble only as far as the nearest support. In other words, the bulls might not be quite done.