The indices didn't do much today, but given how extended we are, it was a victory for the bulls just to hold us steady. Breadth was slightly positive and there were a few pockets of momentum, but overall it was mostly a day of consolidation. It looked like the bears were ready to press a bit late in the day but the bulls jumped in and took off on the lows. As you might expect, volume was light.
The bears are going to look at this action and say that momentum is slowing and buyers are getting tired. The bulls are going to respond by saying that they deserved a rest and that this is just a pause to set up for further upside.
News is hitting after hours that TXN is buying NSM for a big premium. That is igniting the semiconductor sector, which has been a big laggard lately. The news will catch some bears by surprise and may give us a squeeze in the morning.
The market is still technically extended, but the bears are having an extremely difficult time trying to kill this momentum.