The usual options expirations volatility appeared to take hold this morning, though the market is starting to drift as we move through the morning. With the widely-watched stocks in the Nasdaq clearly lagging this week, you can be sure there are plenty of traders overlooking the progress made in emerging markets (namely, China), transports, financials, materials, energy, real estate, and homebuilders this week.
Overall, the S&P 500 is going to finish green for the week (barring a 1987-scenario into the close), as the correction since mid-September still looms. The indecision in quite a few stocks and sectors has made it difficult to hit the accelerator with vigor, though that can change in a hurry next week.
The best opinion I have in terms of discerning where we are right now is to take a deep breath and look at the weekly timeframes across the board. I think you will find that despite the last five weeks of price action, overall this is still the bulls’ market to lose. That doesn’t mean you should lever up and mortgage the house to be 200% long here, but it does mean taking the bears’ enthusiasm on a day like today with a grain of salt is probably correct.