We were due for a rest and maybe some end-of-the-week profit-taking, but all the bears could manage was a close just a few pennies into negative territory. It was a flat day of action, but breadth was weaker for the first time in a while. Volume picked up a little, but for a market at its highs, it was a very quiet day. The dollar has some notable weakness, but that was not a market driver like it has been in the past. Oil and steel did well, but gold was in the red. Retailers were strong on good sales news, but there has been a tremendous run in the group, and it looks extremely extended at this point.
Of course, almost everything is extended after the market run over the past month. It has made for some challenging trading if you don't like to chase stocks that have made big moves. Unfortunately, for the bears, there are still very few signs of weakness. Other than being overextended, there are no glaring negatives in the technical action. Of course, there are there are plenty of very bearish fundamental arguments that can be made, but that has been the case for a year now, and it just hasn't mattered very much. You would think that we have already priced in all the possible positives, but arguing with this market is not a good way to make money. Almost all of our big rallies over the past year have started at the beginning of the month and then we would struggle in the last week or two of the month. September, October and November last year are particularly good examples. We reach the midpoint of March next week, so I'll be watching for this pattern to repeat itself.
Turn your clocks ahead this weekend!