We stopped a streak in the market on Monday. Since mid-May, Nasdaq had not had two consecutive up days, but with Friday and Monday being green for Nasdaq, that streak came to an end.
Here's another streak that has been going in the market since mid-April: The second trading day of the week, which is usually a Tuesday but not always, has not been green. Will this week snap that streak?
Then there is net volume for Nasdaq. That's up minus down volume. For the past 10 days, it has been positive every single day. Despite the fact that Nasdaq itself hasn't had consecutive up days, net volume has had plenty. This is the longest streak since November, when it went 11 straight days.
Of course in the either/or market that means the transports have been red for five straight days, their longest such streak since January. In the end, it leaves the market in this giant sideways grind that we've been in for a few months now. Up/down/up/down. Group rotation.
Breadth on the New York Stock Exchange was positive 400 on Monday, which for an S&P that was down is good. It keeps the Summation Index rising. However, positive 400 for a Russell 2000 that was up 1.5% is not so great, but rather lagging. You can spin it anyway you want to.
Mostly we're in a market that is short-term overbought with sentiment bordering on giddy, but not quite there yet.
Just look how the banks have stalled. We see them churning up here for five weeks now.
Or the industrials that everyone loves so much. They too have stalled for the last five weeks.
Energy Select Sector SPDR Fund (XLE) managed to break out and then went nowhere. If it trades back under $55, it will be like the child who runs away from home and goes to the neighbor's house instead of actually running away somewhere. They didn't really mean to break out, but just pretended to.
There is one group that has had a proper correction and is finally starting to show signs of improving, and that is the utilities. I had thought the Utes could come down to 880, but they seem to have missed and only made it to 890. They appear to be curling under.
So that's the sideways market we're in. Two steps forward, one step back. These stocks run, while those stocks don't. And the entire time sentiment gets more bullish not less. The put/call ratio, which had climbed up to .84 Friday quickly came back down to .69 on Monday. I still think the 10-day moving average of this metric should bottom out later this week. We'll see if any of the other sentiment indicators get extreme when they are released this week.