The action isn't bad, but it is very slow and there isn't much trading. Breadth has slowly improved and there's leadership from semiconductors, but price action is mostly slow and random.
The good news is that the action is productive. This sort of consolidation is needed to set the stage for the next move. The ideal scenario would be further consolidation and maybe a bit of downside while the fiscal cliff debate continues, then a rally that turns into an uptrend when a deal is eventually made.
That is what I'd like to see, but you can't trade on that potential. All we have are some short-term trades. I would like to have more money in play, but the opportunities just aren't there. It would be nice to load up on fast-moving stocks, but as long as the fiscal cliff issue is out there, the opportunities will be limited.
Overall, I like the way things are developing but it is going to take patience for buy points to set up. In the meantime, it is a market for flipping.