Not a surprise the market took a breather today despite a positive reaction after earnings by BAC. Volume was lower across the board. A good sign with the market mixed. Another few days of quiet, tight action would do wonders. We are still finding new longs and continue to be nearly fully invested. We have our exits in place in case our positions go against us. Given the lack of bulls it would not surprise us this market just continues marching higher. Stick with the trend.
Sentiment continues to show a lack of bulls as the AAII sentiment survey showed only 27% of respondents were bullish. Bears did not move and remained at 24%. Despite the lack of interest from bulls this market is overbought. A little back and fill would not be a bad thing. It will likely be the case. Of course, this market could just power forward and why we will simply react to what is in front of us.
We continue to operate under a buy signal and continue to see many traders fight this market. Sure, central banks are propping this market up. At this point price continues to be the number one indicator of this trend. No matter how bleak the macro picture might be price is always going to tell the true story. Forget the noise and stick to what matters.
A decent week this week. Have a great weekend.
