I've been writing lately that we can't be too quick to look for a market top; on the other hand, I've seen reasons to be more cautious. As a result, I'm feeling a little out of step as the market walks back up and continues to act pretty darn well overall. Breadth has been steadily improving and there are still no sign of a rush for the exits. In fact, there is still plenty of chasing taking places in stocks that have posted good numbers. Even Facebook (FB) moved back into the green for a while after a shaky start.
When I feel a bit out of step with the action, I focus more on individual stocks and try to ignore the indices. Typically, action in the indices tends to cause emotional and mental confusion for traders. If you are on the wrong side of the market, the main reason why is because you are fighting the indices and not focused enough on what individual stocks are doing.
I'm going to work my charts and see if I can come up interesting buys into the close. I'm not going to think about the indices too much, but I will watch for another weak finish. It is easy to find things to worry about if you try, but there is still plenty of positive action and it is far more productive to stay focused on that.