The Day Ahead: Have Rally Destruction Seeds Been Planted?

Really, the stock market finished a session lower? Is that even possible in this era of permanent open market operations? Well to put it mildly, it's uber difficult to extrapolate a hill of beans from 26 points in the red for the Dow, which was a bounce from the depths of the abyss on the day (what else is new...). Going through the market sector by sector to make sure we weren't on the verge of mid-week destruction, this was my feel:

Minor profit-taking as the market digests sprouting seeds of concern. No definitive confidence in said seeds morphing into a major equity pullback. Bids remain concentrated in U.S. centric sectors that are dependant on consumer spending trends. The market is content to sit on winning hands; the rotation from defensives isn't exactly so noticeable. For example, countless papers continue to reference defensives (utilities, etc.,) being the hot area of the market.

Combine these bullets and presto, we are inside a market likely to stay in autopilot mode. However, as I wrote on Monday, one definitely should be cognizant that markets don't climb to the moon forever. The list of things to be tracking, other than weather patterns for a black swan type hurricane this summer, has to be in the growth zone. Don't sit on your hands and become lulled into sleep, that's what losing investors do. Here are a few added items I am wrestling with:...344 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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