It was a mixed day of action, but the bulls were still able to hold up the major indices quite well. We had some aggressive selling of gold, silver and oil, which have been leading lately, and there was weakness in small-caps, but strength in some big-cap technology names like AAPL and AMZN helped to offset the negatives to a great extent.
I don't like the fact that the pockets of speculative momentum that we enjoyed during the thin holiday trading have dried up. Also, it is troublesome that we don't have any obvious upside leadership, however we still aren't seeing enough negative price action to make shorts attractive.
It was a good sign that the bulls managed to close us fairly well, but with positive seasonality slowing and still a couple weeks before fourth-quarter earnings to start to hit, we are susceptible for a bit more profit-taking.
If the market stays true to its recent character, that means we will just keep on climbing and make any sort of caution look foolish. Luckily, I've been trading long enough that I'm used to feeling and looking foolish.
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