The stock market is under pressure, as expected.  The carnage however is less than anticipated when the Dow was indicating to be down more than 500 points at the start of trading.  Ironically, market bears would suggest the urgency to buy the dip is a sign of exuberance.  The fact is, the masses aren’t giddy, but they aren’t afraid either.  They are sitting on the edge of their seats ready to act depending on how the market reacts to this latest hurdle.

Today, the first wave of buying has dissipated, for now, so the focus is on whether the market drifts from here.  On the upside, a move above 26,332 would trigger more buying, which could fuel a major bounce into the close.   A close above Dow 26,677 probably catapults the index to a new record high.

Dow Jones Industrial Average (one-month chart)

A lot of tech names have the greatest exposure to China trade, and this is pressuring tech in general, and making it the worst performing sector in today’s session.  Material and Industrial names are also under pressure.

There are other things going on with the market today, and this week.   There are 59 S&P 500 companies reporting this week, and the Uber IPO, which could be one for the record books.

Don’t panic lads!