Today’s trading is interesting. The news is generally good. Microsoft (MSFT) reported a really good quarter after the close yesterday. Dow components Honeywell (HON) and Caterpillar (CAT) also appear to have reported good quarters before the open this morning.
But the initial pop in the indexes was sold – and no buyers have surfaced ahead of the weekend.
The trading in Microsoft today tells the story: sell strength and stay on the sidelines (MSFT 1 Day Chart).
Volume isn’t that high which suggests to me there is not a huge amount of selling. I think there is moderate selling and very little interest in buying as a general cautiousness prevails.