We are off to another mild consolidation this morning, apparently digesting the gains of the past two weeks. The recent pattern of opening weakly but finishing strongly may very well still be on the table, though the continued declining 50-day moving averages above price on the major averages are bound to be heard from sooner than later.
The main issue I see with the market here is whether we back and fill between 1400 and 1415 on the S&P 500, or whether we head back down to try to make a higher low around 1365-1380. Transports and technology stocks are seeing some giveback, while energy, utilities, and staples try to pick up the slack on the upside. Thus, it is indeed encouraging for bulls that the likes of AAPL AMZN EBAY GOOG have yet to give back more than 1% of recent gains today, if that. That said, I am not going to assume the back and fill scenario is a foregone conclusion.
