Not a bad day at all today on Wall Street, as stocks sold off a little following yesterday's reversal off the Fed release. When a market runs as far and as fast as this market has the past few weeks, pullback are normal and healthy and so far, that looks exactly like what we have today. Support levels held just fine on the S&P and Nasdaq and even though volume was heavier, it looks like ADBE will be a reason for the increase on the Nasdaq.
I don't have much to say today - really we are at a point where there isn't much to do other than let the market digest its recent gains, which will allow new buy points to emerge on some of the leading stocks from the recent run-up. Perhaps the past two days were the start of that digestion - let's at least hope so. The Nasdaq has a good bit more room to pullback (all the way to 2305-2310 would be just fine as the 9 day MA starts to move into that area) while the S&P doesn't have quite the same room but has some nonetheless. The 9 day MA is moving up into the 1125 area and that's where I would watch.
I get the sense that most traders are looking to buy this pullback and based on the way the leaders have acted recently, it makes sense to have that outlook. That's my only worry right now - does the market have some big surprise in for all of us that will take us down much further than a "normal" pullback? There is no evidence of that happening, so until I see something different, I remain bullish and am looking to buy.
As I find good pullback setups, I will share some, but for now remain mostly in cash and remaining patient. Good luck Thursday.