The market continues to refuse to roll over. After a little more weakness than has been usual this morning, the dip buyers finally showed up just in time for lunch and did a nice job of taking things back up before a little last-minute selling.
But the real stars of the show today were the stodgy consumer staples stocks such as PG, KO, PEP, PM and CL. They were joined by some other old names such as T, SHLD and SBUX, and there was plenty of activity in small caps as well. If folks are worried about this market being overextended, we didn't see many signs of it today.
The market continues to be in difficult position of being obviously technically extended but having enough momentum and underlying support to prevent any meaningful weakness. It is a little bit more volatile lately, which is an indication that there is more short-term flipping. Market players tend to be more aggressive with their flipping when they want to stay long but are becoming more concerned about the market being too overbought.
One can find many reasons to be skeptical of this market, but the technical action is still supportive of the bulls. Until that changes, we have to continue to look for opportunities on the long side......