There is really almost nothing to say with this market these days. Lower volatility is keeping things under wrap while the market tries hard to unwind but the problem is the flat market really isn't allowing for too much unwinding. The market is having a lot of trouble blasting out, and the main culprit is likely coming from sentiment, which is getting to very bearish levels in the real world and possibly even in the fed world. To give no respect to increasing froth is a dangerous thing to do. The bulls are feeling invincible, and that can be the kiss of death. That said, the bears keep on letting the bulls stay in the game. Unable to bring price down consistently.
They are going to have to remove S&P 500 2134 to get the ball rolling in their favor, and for now that seems next to impossible, although all things are always possible once froth gets up there. You can snap down at any time and without warning. So today was just another day in an attempt to take the market down that simply didn't happen for the bears. On the other hand, they can feel good about the extension of time that has gone by since the S&P 500 2134 breakout on July 11. Still no major push up after nearly six weeks. Not the more bullish behavior, for sure. That said, the bulls remain in control, even though it's tepid at best. Advantage bulls for now.
What everyone is trying to understand is what will it take to blast the market higher or lower. The answer probably comes on Friday when we hear from Fed Yellen once again. If she goes along with some of the fed Governors out there who are saying it's time to raise rates, since inflation and jobs are solid, then it's possible the market will take a hit lower. She seems to be sending some of her crew out there these days trying to warn us that a rate hike is coming later this year.
However, there have been times when Yellen has sent these folks out, only to later take back the warning. No one trusts her, so it's quite possible the market wants to hear the words out of her mouth only that she will raise rates. That might upset the market for at least a little bit. A small correction at least. She has forewarned many times, only to find one excuse after another about why she isn't going to do it. The market is tired of her words of a hike that never seems to come.
The market will hang on her every word this Friday, so we may just meander about for a few more days, and then finally make a larger move. Until then there probably won't be much to talk about. Above 2134 on the S&P 500 and the bulls are fine.