Market Pause

The market is overbought, so it definitely needs to rest. Not that the market ever does anything to accomodate the masses, but benign consolidation days like today are healthy, and should be resolved by further strength.

In ETF-land, semis were down the most (-1.8%), followed by retail, while energy stocks led on the upside. Oil finished just under $60, and bond yields closed at 4.56%.

Some notable stocks that rallied today included:

• MNST - extended run into new highs
• GS - up day withing short-term consolidation
• ELOS - possible cup-and-handle?
• SNDK - reversed hard off of morning lows
• GRMN - trying to get back above 50-day
• IRBT - breakout continues

Bullish sentiment is now starting to dominate our indicators, so I would like to see some more pessimism surface to rebuild that 'wall of worry'. Unfortunately, that usually means we need to see some more selling.

Have a great night--

long ELOS, MNST