Thursday, February 2, 2012

While the indices had a very mixed day, very dogged underlying support prevailed again and prevented any real weakness. There was a fair amount of speculative action in individual stocks, which I suspect is a function of underperforming bulls trying to catch up with a market that won't go down.

While the market has been struggling over the past week to make progress, it is still holding and we need to respect the fact that the uptrend is intact. There are plenty of reasons to be wary but, so far, there is no price action to support the bearish bet.

Don't forget we have the monthly jobs news in the morning, and that will be a major market catalyst. I'll be looking for the bears to try to sell any strength the news brings and, of course, I'm sure we can count on the dip-buyers to step up fast if there is a negative reaction.