Is This Market On Solid Ground?

On Tuesday, the market did an excellent job of building on Monday's bounce. That had a lot of bulls licking their chops at the idea of another powerful V-shaped bounce back to new highs. Unfortunately, the action was much more mixed today, and if it weren't for the strength of big-cap technology stocks, it would have been downright negative. The strength today was very narrow, but it was in a few key stocks, and that helped to hold the indices up much better than the underlying action warranted.

So is it "V or no V?" After the action today, I'm more inclined to say we won't see the V-move back to highs - maybe. We are stalling out right around 1100, which is a key technical level in the S&P 500, and I just don't see very much positive action. We had a good oversold bounce, but we still have no leadership at all in the market. Even the regional banks, which had so many excited just a few days ago, have rolled over and now look weak.

CSCO is out tonight and it looks pretty good. This may improve sentiment in the tech sector, which may further the bounceback.....Technology stocks have seen consistent selling on good earnings this quarter, and hopefully CSCO won't fall in the same trap.....