Apple (AAPL) kept the Nasdaq in the red, but the other major indices managed gains. Breadth was pretty good at about 3350 gainers to 2070 decliners, and banks and homebuilders provided leadership. But under the surface, there were quite a few reversals and the market closed on the weak side. I found the action in many individual stocks troubling and I didn't feel very good about the way it moved today. The midday spike felt frothy and manipulated and there was just too much red on my screens.
I constantly preach that we shouldn't anticipate a market top but I didn't have a good feeling about the action today, although there weren't any glaring negatives. Many market players think that tonight's State of the Union address might be the catalyst for a top, but I see no reason to jump to that conclusion.
I have to admit I'm finding it increasingly difficult to stick with longs as this market floats higher so I'm rooting for some downside, but I don't want to let my hopes color the way I view the action. As I've often said, markets at their highs don't just suddenly reverse and fall apart. Tops are a process that take time to develop and there are still few signs that things are about to turn.
Have a good evening. I'll see you tomorrow.
