The bulls just aren't pressing very hard and the obvious overhead resistance on the S&P500 at 1300-1304 proved to be a roadblock.
What has been particularly worrisome is that there isn't any leadership or major pockets of momentum. We had some action today in rare earth stocks, like AVL and MCP, and some of the small-cap oils, like BDCO, LEI and ROYL, but we are only talking about a handful of stocks. The vast majority of stocks and sectors are showing very little life.
The good news is that we are still holding above the Monday morning gap area and if we can continue to do that, then the odds of a successful attack on upside resistance are better.