Only two of the eleven sectors were higher by the closing bell yesterday. The biggest hit happened in the oil patch, as Energy (XLE) continued to follow crude oil lower.

Market breadth also reversed the winning streak trend.

It's remarkable how far and fast the market rallied, underscored by the move in the Fear & Greed gauge from “extreme fear” a month ago.

After a nine-day rally, the market finally hit the restrictive force of friction. Interestingly, it moved higher after opening lower and gained momentum.

This is the play we’ve seen throughout the best rally in two decades - the market opening under pressure to come roaring back. Yesterday, it was the exact opposite.

The Institute for Supply Management (ISM) Services Survey came in at 51.6, better-than-expected. Employment climbed, and so did prices as production slipped.

Lots of tariff chatter overshadowed the better-than-expected results. “Uncertainty” was mentioned over and over again.

Palantir Slips

After the close, Palantir Technologies (PLTR) posted results that aligned with the Street but issued strong guidance, which initially sent shares higher. Later in the evening, the shares began losing altitude.

Today’s Session

Futures have been under pressure since the start of after-hours trading. 

Reactions to earnings and guidance are overwhelmingly negative and almost every name is poised to open lower.

Downside reactions:

• The Clorox Company (CLX)
• Lattice Semiconductor (LSCC)
• DoorDash, Inc. (DASH)
• Vertex Pharmaceuticals Incorporated (VRTX)
• Palantir Technologies Inc. (PLTR)
• Hims & Hers Health, Inc. (HIMS)

Upside reactions:

• Marriot International, Inc. (MAR)
• Upwork Inc. (UPWK)

MORE EARNINGS ON DECK

This is an important period for the market to consolidate recent gains without violating key support points.

I’d like to see a 5575 hold.

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