After screaming higher from 1267 to 1341 on the S&P 500 in just five trading sessions last week, the market has given up a mere eleven points thus far this week. While the market was, and still may be, overbought as measured by a variety of indicators, the harder we see the major indices fight off a major pullback, the more bullish the environment tends to be.
After a soft open this morning, stocks are back to hugging the flatline, which shows how difficult of a time the shorts are having trying to anticipate a major gap down. Underneath the surface, gold and silver miners are leading again, while many other areas of the market look to be taking a healthy pause today. That said, seeing names like GOOG LAVA QCOR (long) and SFLY continue to break higher is constructive as far the broad market permitting breakouts to hold.
