After the oil mini flash crash and oil service stocks mini crash in the past few days, some are wondering if this would spill over to the S&P. The indices ended up but there were about 10 intraday swings in a tight range. Stocks like J.C. Penney (JCP) and Questcor (QCOR) had wild swings due to news events while Apple (AAPL), Google (GOOG) and Amazon (AMZN) continue to hit new highs. Despite the intraday swings we are still in a strong uptrend and with QE bid below.
We have the SPY dividend and option expiration on Friday; underinvested bulls will be looking to buy any weakness.
Consolidation
For the second straight day, the market saw mild selling and late day buying yesterday. Trading action feels like typical QE stretches when volatility remains low and range small as we slowly grinds higher. Not much to say as infinite QE gets underway.