The good news today was that we managed to hold the 1108 breakout level for a second day and continued to do a good job of consolidating the recent rally off 1050. The bad news is that it was an extremely boring day. We did have another one of these crazy, illogical, last-minute swings to close us near the highs, but volume was light, breadth slightly negative, and we had the miserable BP congressional hearing on television all day.
It is a major positive that the bears aren't able to do more damage, given that we are a bit overbought and don't have any volume, but the bulls need more life before we'll have better trading opportunities. There is some very narrow leadership, but it sure seems like most market players are either feeling disgusted or confused by the recent action.
We are in no-man's land right now and can easily tip one way or the other, depending on the next headline that hits. Bad news in the near term seems more likely than good news, given what has been going on, but the bulls aren't ready to throw in the towel just yet.
We need to watch closely to see how things develop and be ready to act quickly. I have the feeling that a big move is coming very soon, so stay extremely vigilant.
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