A pretty boring day on Wall Street today, and to be honest, it's one of those days where I don't feel I have much to write about. The market was down slightly but overall the market looks to be consolidating here, which is not a bad thing. Further sideways action would allow new buy points to emerge on quality stocks. Right now, there are very few if any of those safe buy points as most leaders are still extended.
I posted on Twitter last night that a few breadth indicators were flashing warning signs that perhaps we've gone far enough (without a decent consolidation) and that still holds true. However, this does not mean we are topping out here - it is simply too early to say that. It is possible that we do, but if we just move sideways for a week or two, then those signals won't matter. I will continue to wait for a clear signal that stocks want to move lower before doing anything other than looking for potential longs to enter. Last night, I tried to get into HTHT after-hours but was unable to do so. It was up 5% today and was shown in last night's post.
As we consolidate, there isn't a whole lot to do right now. Just keep your eyes on the leading stocks and watch for quiet pullbacks from which to get long. If this market does want to top anytime soon, it will give us signs with some heavier volume selling and negative breadth. Again, sometimes you have to wait. Good luck Thursday.