After a relentless climb higher over the last couple weeks, we finally have a day when the indices do nothing - although they still ended a little higher. That is probably a slight relief to the bears, but they sure aren't making any money on the short side with this sort of action. Even with the indices doing nothing, we still had positive breadth and some strong action in REITs, casinos, builders and banks.
Many think the market's too strong to short and too extended to buy (although I still like AAPL and BAC here), and today didn't change things much. We had a little consolidation, but it hardly qualifies as profit-taking. We are still sitting way up on the high wire, but the market isn't exhibiting any worry about a possible fall. The major anxiety continues to be over gaining some long exposure at a reasonable price.
I'm being a wild contrarian here, but I think a rather aggressive push upward is possible here. We have few, if any, signs of weakness and lots of underlying support.