The excitement on Friday that drove the market to its highest close since May was nowhere to be found today. The action wasn't bad; it was just slow and lacking in energy. We stumbled around most of the day and then, when a late afternoon push fizzled, we sold off a little into the close. There was no sudden rush for the exits and buyers even managed to push a number of extended stocks higher.
Volume was light, breadth was slightly negative and there wasn't much leadership other than some familiar big-cap names. On the downside, banks were the most worrisome, but we also had relative weakness in chips and retail. The weak finish was definitely a negative as well.
It was an overall lackluster day, but it wasn't bad enough to change anything. We are still slightly extended, but we are holding above key support levels. There is nothing technically wrong with the market right now and, with the end of the quarter upon us, there is likely to be some pressure to continue to hold us steady for a few more days.
I'm wondering if Friday might turn out to be just a one-day wonder. Understandably, a lot of folks felt that the Friday buying frenzy was toppy and frothy, and the lack of any continuation of that mood today adds some weight to that view.
We'll see if we can regain the excitement that was in the air on Friday, but the lack of energy today has me a bit concerned, especially once we are past the window-dressing pressures.