We have been choppy all day as profit takers do battle with some decent earnings report. The bears are anxious to press after the failure to sell off on Ben Bernanke and the somewhat-extended technical conditions, but so far there is a decent bid holding us up.
We have a slew of earnings tonight with Google (GOOG) and Microsoft (MSFT) being the most interesting. GOOG has been struggling recently on worries that it would be a soft quarter, but has come to life recently and now you have to wonder if expectations have grown too high.
Technically, it isn't hard to see the argument for a pullback here. The S&P500 has taken out the recent highs, which should have triggered buy stops and now the quick reversal will be an excellent bull trap. We are a bit extended and volume has been dropping on the move. I'm not bearish, but I am ready for some consolidation. Of course, when you are ready for it, it is less likely to occur.
I have to head out to the Florida DMV to renew my license. The process is like undergoing a forensic audit and if I'm late they will probably impound my car.
Have a good evening. I'll see you in the morning.