Monday, April 23, 2007

A Quiet Pullback

Very swamped tonight, but wanted to drop a quick note to say that stocks behaved well today. The small pullback on lower volume was near-perfect action on an OE Monday.

As noted earlier, the best part was that the IBD100 had a solid day, up 0.7% as 60 stocks moved higher. On a pullback day, you couldn't asked for a better sign that bullish spirits are alive and well.

The mainstream press said that stocks slipped on higher oil prices, but energy stocks had a very muted day. Also, the Transports eased on light trade, so I'm not so sure. Based on volume market-wide, looked like good-old-fashioned profit-taking to me.

Nearly 1/3 of the SPX reports earnings this week, which means that by Friday, the market should have a decent grasp of Q1 earnings. The big question tonight is whether the TXN report can goose the SOX tomorrow. Chips breaking through resistance would be a breath of fresh air for this currently tech-challenged market.

Until tomorrow, have a great evening.



We need an up day tomorrow to protect OBV, but other than that, this is a great looking chart tonight on many levels. The Composite could continue to trade sideways for a while without suffering meaningful technical damage (though that certainly wouldn't be as much fun).

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