Despite the poor action in Apple (AAPL), the indices held steady and breadth was close to flat. There continues to be solid underlying support but buyers aren't as willing to chase. While the action was solid, there wasn't much momentum. We had a few short squeezes but a dead-cat bounce in precious metals was the best sector action.
While it wasn't a very interesting day for traders, it was healthy that we consolidate a bit more going into the bulk of earnings season. Flat action now gives us a good foundation for the next move.
I suffered a few nicks today and cut back some positions as a result, but I still don't see any reason to be overly negative about the market. There is the usual long list of reasons to hate this market that put forth by the bears, but we should all know by now that there is no way to time when the negatives might start to matter. Right now, the price action continues to be productive and until that changes, I'm going to continue to give the bulls the benefit of the doubt.
My biggest concern now is that I'm not seeing much new to buy. That forces me to hold more cash, which is sometimes a good warning sign, but I don't see any reason yet to believe the market is about to collapse.
Have a good evening. I'll see you tomorrow.
