Shallow Corrections

Editor's Note:

The market's rally has stalled but it's not showing any willingness to move lower either. No one wants to buy at these levels but no one wants to sell either. Currently the S&P 500 and NASDAQ are facing heavy resistance. Logic would suggest the market is due for a correction but market's don't act on logic. Markets move on fear and greed. Right now there are too many people afraid they're going to miss the rally.

If stocks do see a correction the crowd of investors fearful of missing the rally is going to jump in and buy the dip so pull backs are probably going to be lighter than expected. I'm bullish for the rest of the year but we need to be patient and wait for the next entry point.

I've added new candidates to the watch list.