Yesterday, quite honestly, we were at least a little bit hoping that the market would hardly budge one way or the other. After last week’s gains -- many charts had shifted from oversold to overbought territory, and it seemed safest for the market, or the minds of the players, to simply work off the gains to create a better atmosphere for a move higher without hesitation or thoughts of too much too fast.
But yesterday some players were chomping at the bit to get into the action and during some brief dips, they quickly stepped up to take advantage. The S&P 500 closed near the high of the day. Consumer discretionary stocks enjoyed some nice gains and, not unexpectedly, there was some weakness in the defensive sectors.
There have been some positive signs lately – and as long as reports come in okay and there is no unexpected fly in the ointment, the market seems in pretty decent shape.
Having said that, though, our minds are unchanged. We do still anticipate that at some point here gains will need to be digested. And that should create some better entry points than we are seeing now.
Patience is generally rewarded -- and we expect to remain patient in waiting for those good entries.
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