I must say, this market has bipolar tendencies, which worries and intrigues me at the same time. It is clear that stocks need a catalyst to get it over the hump, and yet indecision, which is usually a cause for weakness, has not sent blue chips lower. In the meantime, the Russell 2000 closed right at its 200-day moving average (exponential). Even that 200- point decline fails to illustrate the true carnage in the past four weeks. However, I continue to wonder how much longer these diametrically opposing forces can resist each other.
Yesterday, it felt like the Dow pulled up all the other major indices early in the session, but late in the session, they pulled it down, and by the end of the day, it was a wash. At some point, the bifurcation will stop, and the blue chips will inspire oversold tech stocks, or the same panic will also spread to those companies with earnings and ancient operating histories.
Futures have put on a brave face this morning, resisting a pre-open stumble. But, stocks will generally open under pressure.