The title of this post speaks for itself. Frankly, I am very surprised that on the third day of the new year the market remains almost as quiet as it was during the last two weeks of December.
The fact that the market is narrow and dull and at the same time trading at new highs for the rally from the March 2009 low gives me pause. We have broken well above the 1080-1115 trading range, but no aggressive buying activity is evident. Experience shows that when the market gets dull after an extended move it is about to go into reverse. This leads me to believe that a break down to 1100 or even further is imminent.
Nonetheless, I am retaining my bullish bias. Any break of 30-50 points from here would only serve to shake out the weak longs and recharge the uptrend's battery. I still think that the ES will trade at or above the 1170 level before spring arrives.