Market Bouncing on Poor Breadth and Volume

The market is bouncing into the end of the month here, but we would look for more volatility today. Breadth is very poor and momentum has all but died out. We may get a stronger rally next week but right now long positions are really struggling to make decent gains. Bears are convinced we are at the top. We wouldn't go so far as to make that prediction at this point. We do however want to exercise caution and proceed with care until breadth and momentum improve. The energy sector is correcting, which could lend to a sector rotation into tech. Right now money is moving fairly aggressively out of energy, but has yet to move aggressively into tech. As such we would focus on shorting energy here. We do not recommend opening new long positions until the picture clears up a little.