The indexes are trading near flat and whether that is good or bad depends on your pre-existing bias. If you bullish, then this action is a healthy consolidation at the highs that helps to alleviate overbought technical conditions. If you are bearish, then this is stalling action and indicates that the market's running out of buying power and ready for a fall.
My attitude about action like this is that the trend is still positive and there isn't enough negative action to change the character of the market. Breadth is weak, but the chart of the Russell 2000 exchange-traded fund (IWM) actually looks quite positive. It has been consolidating for over two weeks now and is in a strong position for a run at the highs. If that was the chart of an individual stock, I'd be inclined to buy it.
The best mindset for this sort of market action is to embrace the idea that you don't know what is going to happen next. Many people are uncomfortable with that approach, because they have been taught that smart people always have a good argument for what is going to happen in the future. Those with special insight can predict better than those without, and therefore we should at least have some sort of theory.
My trading has evolved in various ways over the past 20 or so years. One of the biggest changes I've made is to focus less on predictions and more on strategy. I've come to realize that predictions simply don't work. Even when they do, it is often more luck thank skill.
What determines success more than anything is managing positions as they develop. Be patient with those stocks that are acting well and be quick to dispose of those that breach key levels before the losses grow. It sounds simple, but actually doing it is tough.