Thursday, January 12, 2006

On the 8th day, the market pauses

The market closed near its lows for the day. But volume did not exceed yesterday's levels, so it was not a distribution day. The indexes also did not rise above yesterday's highs, so it was not an outside day either.

The advance/decline line was weak, but the Hi/Lo index wasn't that bad. Overall, it was just a pullback on an overextended market. This market still needs to put in more time to work off its overbought condition.

I want to be patient before committing to new buys. I don't think this pullback will be severe, but I hope it lasts more than just a day. And don't forget, earnings season starts in earnest next week. So there is bound to be additional volatility.

Have a great night--


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