Markets were bifurcated Tuesday with benchmarks finishing off session lows. The Nasdaq finished with a fractional loss while the S&P 500 fell .65%. The IWM which represents small caps fell .5% and fell underneath its 50 day SMA. Markets were soft to start the session dragged down by oil once again and it closed the day up a dollar off intraday lows. Perhaps the cue that oil was going to catch a bid was with airlines acting wobbly as names like LUV dropped 9%. Select energy names did respond well to the development with best of breed play PXD finishing more than 8 handles higher off intraday lows and we have egg on our face after our recent post discussing the group. With the overall markets still feeling heavy and the fact that many declare the energy names will face stiff headwinds into the end of the year for tax loss selling, on the flip side all 4 of the FANG names advanced today. If one believes energy will be weighed down one must consider that these names will drip higher into the end of December as portfolio managers window dress. Of course the Nasdaq was helped by the early rebound in the biotech group as the IBB rang up a 2% gain. We addressed some name in the group in a post earlier this month in this sector and HZNP and ANAC both enjoyed productive session with HXNP recording a bullish engulfing candle off precise 50 day SMA support and ANAC registering a bullish piercing line pattern as it halted a 6 session losing streak. I personally think, and opinions mean little, that there is still some overall market weakness ahead, as many search for a bottom. The 2 aforementioned sectors will have something to say about it, but I still think energy is a good risk/reward if you have a longer time horizon. I have not seen sentiment so bearish in quite some time.

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