Equities opened slightly higher, then ran out of steam as overhead resistance became an obstacle.  Comments from ECB President Mario Draghi that the euro-area growth outlook is broadly balanced, however, the balance of risk is moving to the downside. These comments didn’t help the markets gain traction. 

Transportation stocks were struggling after yesterday’s downgrade of FedEx (FDX) and today’s cautionary note on XPO Logistics (XPO) from Spruce Point Management. 

In class 8 truck orders, FTR reported that November orders fell to 27,500 after topping 40,000 units for the past five consecutive months.      

Retail stocks were under pressure after apparel companies Oxford Industries (OXM) and Tailored Brands (TLRD) reported disappointing earnings, followed by yesterday’s disappointment from Under Armour (UA).   Oxford’s brands include Tommy Bahama, Geoffrey Beene and Dockers, and Tailored is best known for its Men’s Wearhouse and Jos. A. Bank brands.  The stocks are trading lower by 11% and 30% respectively. 

On a contrary note, the American Association of Individual Investors (AAII) released its investor sentiment reading.

• Bullish sentiment dropped from 37.9% last week to 20.9% this week, this is the lowest reading since May 2016.
• Bearish sentiment jumped to 48.9 from 30.5% in the previous week, this is the lowest reading since April 2013.

The extreme sentiment readings are viewed as a potential catalyst for a market rally.