The indexes are holding tight and near their highs as they consolidated last week’s gains. The NASDAQ Composite Index did get hit with a distribution day yesterday, as did the other major market indexes. But it is so far holding up in a tight three-day flag formation after posting new all-time highs last Friday.
From the point of view of the indexes, things look okay. Of course, this is not necessarily a reason to become complacent and drop one’s guard. As I recall, back in mid-May things were looking quite good on May 16th as the index pushed to new all-time highs at the time.
But the next day investors had the rug pulled out from underneath them as the index gapped down and broke hard to the downside on heavy selling volume. That’s the thing about this market. The better it looks the more nervous I get! ;-p
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