Sadly nothing has changed since last week. The market is higher but instead of looking stronger stocks just look more overbought and due for some profit taking. The initial reaction to earnings has been mixed. INTC, JPM, and GOOG all rallied on their earnings results but have already started to retreat. GOOG just reported so give it time. It too could see some profit taking.
Imagine we are watching a football game between the bulls and the bears. The bulls have the ball and they've been running it down the field. They're getting closer and closer to the end zone, which for us might be the 1,100-1,120 zone on the S&P 500 index. Here we are at 1,087. Is this where you would want to launch new long-term positions? Probably not.
I am suggesting readers wait for a little consolidation first before considering new positions. Stocks are up two weeks straight and probably need a rest.
No new plays tonight.