Yes, it's a little early to declare today's action anything more than overbought selling interest, but today's slide was the worst one day performance for the major averages in 5 months and that could temper bullish perspectives in the very short term.
Some analysts are pointing to Egypt as one of the primary reasons for the sell-off, and that probably has some measure of merit, but we're due for a correction too and this could just be an excuse to take profits.
Sentiment in Bizarro World - Stocks were flat to mostly higher again yesterday with the indices enjoying varying levels of success. The Dow was up 4-points, basically flat, but the broader indices faired slightly better Market Commentary for 1/28/11 Current Daily Market Commentary
TSP Talk Sentiment Survey results for the week of 01/31/11 - 02/04/11 Hold: Our Sentiment Survey System remains in a 100% S-fund allocation for the week of 01/31/11 - 02/04/11 after a neutral 1.66 to bulls (53%) to bears (32%) ratio. That means the system's allocation remains 100% S-Fund for next week. Bull market rules are in affect since 9/27/10: See latest survey results
To discuss or comment on the Sentiment Survey, go to Sentiment Survey
Last week we saw what appeared to be a market showing signs of topping. Small and Mid-cap issues were hit fairly hard, although Large Cap's tended to fare much better. This week that type of action has largely reversed. One caveat to this week's bullish action is that the DOW has been unable to hold 12,000, while the S&P hasn't been unable to close above 1300. If this market wasn't in a long term sustained uptrend, I might be inclined to think we're peaking. But bullish sentiment hasn't been enough
Rally resumes - Stocks had a decent day yesterday and refreshingly, we saw the leaders actually come back to life as the Dow and S&P 500 lagged... Market Commentary for 1/27/11 Current Daily Market Commentary