Market Indecision

Editor's Comments:

Stocks act like they want to move higher but volume on the two-week rally has been pretty light. Complicating matters is relative weakness in the small cap names. The rebound in the transports has been steady but the transportation index could be forming a bearish head-and-shoulders pattern. Actually I'm seeing possible H&S patterns all over the market.

I'm suggesting investors wait and see if the S&P 500 can get over the crucial 1100 level. We'll study how the rest of the market reacts to the move (or reversal) before launching new trades.