Unlike on Tuesday when the reversal and weak action produced cries of a market top, the lackluster action today is mainly producing shrugs. The indices are still very extended but the bears are wary of being too pessimistic after they were caught by a big bounce yesterday.
Small caps were the laggard today which is reflected in very poor breadth of around 2150 gainers to 4650 decliners. Despite this broad weakness the pullbacks were quite mild overall. There wasn't any big sector rotation and no major themes
This market has had very good support for a very long time and it is likely that optimism about earnings season is one of the things that is holding us up. Unfortunately it looks like IBM (IBM) and American Express (AXP) may be the first big disappointments this quarter. Both are trading down on their reports.
IBM had a substantial run up and big upgrade into its report so it is ripe for some 'sell the news' action but this is not the sort of theme the bulls want to see in front of next week's technology reports.
We shall see tomorrow if the poor response to these two reports spills over to the broader maker but they are company specific issues and may stay contained.
If market players are looking for some excuses to lock in gains they may have one now.
Have a good evening. I'll see you tomorrow.