The market didn’t do much of anything on a very lackadaisical Friday. After a strong week, some modest consolidation should not only be expected but welcomed.  We view the weakness today as positive as a good market do not go straight up and should offer pauses as ‘short termers’ book gains and weak bulls are shaken out. The late day move was impressive, and leads us to believe buyers continue to step up and buy weakness.

Sectors we like to see as leaders faired well and the light volume pullbacks in some earnings winners allows these stocks to set up nicely for new entries.

We have done very little today, cutting a few laggards and starting to search for winners that have either pulled back to appropriate levels or are starting to show signs of life.

We suspect that market participants had their fill by late Thursday and now it is a matter of realigning portfolios in front of the weekend. We remain very optimistic on this market however we feel we are a tad overbought and some further consolidation and profit taking would help provide excellent set ups for some of our favorites.

Enjoy the weekend and be ready for a busy week ahead.

RevShark