The S&P sold off pretty much all week. I would have expected a larger bounce today than +0.2%. It is encouraging biotech and airlines are getting their mojo back. The biotech sector was helped by the rumor of Shire buying orphan drug maker BMRN. Maybe biotech and airlines could become market leaders again. This sounds more like a hope than a view. The food products stocks have a bid on the Heinz KRFT merger, but this news came out the other day, so I don’t see why this should lead stocks higher. HLF is rallying on some business practice investigation news, which cannot be extrapolated to other parts of the economy. Utilities and health care are the leading sectors today. Energy, tech, and financials are at the bottom. This is not a bullish sector rotation. So the M&A news is positive, but I don’t see a lot else to be excited. If the market fades into the close, this might be an ominous sign of more weakness to come. If the market scratches out a small gain, the bulls shouldn’t get too happy about that. As I said at the beginning, a strong market would have a much bigger bounce than +0.2%. Liquidity memo to Oaktree clients, written by Howard Marks, may have spooked the bulls. Keep risk down until more positive signs come up.