The most striking thing about the market action today was its randomness. Yesterday the buyers seemed particularly anxious to buy, but today they were indifferent and the market drifted aimlessly. The good news is that it bounced back nicely from the poor open and from an early afternoon dip, but the lack of energy made trading very challenging.
The pattern of alternating days of strength and weakness continues, although the downside pressure wasn't quite as pronounced today. It doesn't make any sense, but today's action is a good setup for a strong day tomorrow.
So far, the choppy action has not compromised the overall uptrend since the first of the year, but you have to wonder if lack of progress may lead to more profit-taking. There's still good support, but the lack of quality leadership and the narrow momentum makes it feel like further upside is going to be difficult. I'd feel better if I had more long setups to choose from, but I feel like I have to force things to put money to work. We still have a supply of new highs, but most of the movers are thinner stocks.
Something dramatic in either direction would be nice at this point. We need to shake things up and have greater movement to make for better trading. I'll even take some panic selling if it produces stronger emotions.
Have a good evening. I'll see you tomorrow.
