Time For Consolidation? Posted by Coolhand

The string of gains was broken to day, but not by much. Trading was up and down, often around the neutral line.

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It isn't much of a pullback, which makes me think we may have more weakness in the short term. Momentum is starting to weaken a bit; especially on the S&P. Nothing dramatic, certainly, but the market may be topping for the moment. The problem is, the bottom may not be far off either (should the bears manage to keep some pressure on). This is one bull that really does need to be respected even as we try not to be complacent about the gains.

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Cumulative breadth leveled off today. It's still very bullish, but is also showing possible fatigue.

The market is due for some measure of consolidation, so I'd not be surprised with more weakness in the short term. Maybe we get it, maybe the bulls hold off the bears for a while longer yet, we'll have to see. NAAIM reports tomorrow.

I remain bullish, but anticipate weakness in the short term.