Wednesday, March 2, 2011

Probably More Bumps Ahead

We managed to hold fairly steady during a choppy session of trading, but the bulls definitely aren't feeling the love like they did a couple weeks ago. We bounced a couple times and a fizzled a couple times and didn't gain any traction. It is quite different than the rush to jump in on any pullback that we saw from November to mid-February.

Volume was light but breadth was pretty good, especially on the NYSE. AAPL and a couple of other big-cap technology names helped the Nasdaq, but breadth there wasn't as strong although the semiconductors had a good day.

Right now the market's biggest problem is that we are still dealing with the uncertainty of the Middle East and its impact on oil prices. There is no way to know how long that will continue, and it is going to be tough for the market to regain upside momentum until we have greater clarity. In other words, look for a trading range and lots of choppy action as we react to the news flow.

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