The market's performance on Monday was sleep inducing, right up until the last half hour. After a +5% bounce off its mid March lows I'm not surprised to see some profit taking. Yet at the same time stocks could see end of quarter window dressing keep any dips to a minimum. Add in a week with lots of economic data coming out and there is a good chance that stocks merely churn sideways for a few days here.
Keep an eye on the OIX oil index and the OSX oil services index. Both of these indices have rallied right toward their previous highs and stalled. A reversal here will look like a potential bearish double top formation.
I am concerned that Bank of America (BAC) could lead the financial sector lower.
The stock has been hovering near technical support near its 100 and 200-dma. Further weakness from here will likely see BAC testing support near $13.00 and then a drop toward the 12.75 area. Goldman Sachs (GS) doesn't look so hot either and looks ready to breakdown under its 200-dma.
No new candidates tonight.