The indices continue to hang tough, but it's slow going. There isn't much movement in either direction and volatility is contained. Breadth is running 2300 gainers to 2500 decliners. Oil is leading while chips lag, primarily due to Intel (INTC).
My market exposure has declined quite a bit as I've taken stops and locked in gains, but I'm unable to find new buy candidates. Even though I'm bullish about the big picture, I am actually bearish because I have so much idle cash.
The majority of the small-caps that I follow are trading flat and I'm keeping very tight stops on what I'm holding. If the market finally turns lower, like so many people are anticipating, my stops will trigger and I'll look at taking a leverage index play like Direxion Daily Small Cap Bear 3X Shares (TZA). I still have little interest in pursuing the dark side, but if the opening lows are taken out, I'll likely try to catch some downside momentum.
I've made it clear that I'm not looking to be bearish until I see actual weakness. Lower intraday lows would be one sign that would push me to be more aggressive about selling. So far, that it isn't happening.