The good news is that we held on to last week's gains, but the bad news is that that was all we did. It was a very slow day with negative breadth and light volume, but a few big caps such as Apple (AAPL), Wal-Mart (WMT), IBM (IBM) and Coca-Cola (KO) held us up
We needed some consolidation, but the fact that we have three big news events later this week is probably what kept things well contained. Expectations have increased, and therefore the risk of disappointment is higher, and that sidelined some of the action today. Unfortunately, the Fed meeting isn't until Wednesday afternoon, so we have another day and a half of positioning before the action picks up.
We do have some earnings reports hitting, with Cirrus Logic (CRUS) up sharply on strong guidance and Vertex Pharmaceuticals (VRTX) moving on some data. Overall, there continue to be quite a few revenue misses.
I'm expecting another dull day tomorrow, but after that we should have some fireworks as we hear form the Fed and the European Central Bank before the jobs news on Friday. The bears are counting on some bad news after this run, and it is easy to understand why, but they thought they had the edge early last week as well and were run over by jawboning central bankers. Stay alert and don't get too comfortable.
Have a good evening. I'll see you tomorrow.