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What started out looking like follow-through from Tuesday's decline, instead became another very short buying opportunity for the bulls to pile in as the major indexes popped right back up near their 52 week highs.

There was not much in the way of news to drive the markets, so it would seem sentiment was the primary catalyst. Dips have been few and far in between and this one was no exception. Early morning caution saw the downside quickly become limited and as confidence grew that ...

Since it's the beginning of the year volatility will be evident on this chart for a little while. Over time it should smooth out somewhat. Here's how the Top 50 are positioned for Wednesday's trading:



Bonds are catching a bid and the I fund is back in favor. I guess cash is too.



Something we didn't see in last year's chart; a meaningful move.

An earnings miss at Alcoa is being blamed for the first loss of the new year.

Notable among the sectors, the Commodity Index dropped 1.7%, the worst single session percentage loss in more than one month.

News that the government wants to impose fees on banks to help recoup TARP funds contributed to weakness in the financial sector as well.

It is difficult during any OPEX week to draw any conclusions about market action, but the market was due for a pullback. ...

Another lackluster trading session, but another gain for the S&P, albeit a modest one. The character of this market does not seem to be the same one we had last year. We seem to be in a melt up trend with very little downside action. The Seven Sentinels have been on a buy longer than than they have been in quite some time. That's good news. The system was designed to be an intermediate term indicator, but that's now how it acted last year.

But it's still very early in the year and ...

When you compare the Top 50 statistics in this early 2010 market picture with that of the Top 15 one thing certainly stands out. For the most part, the Top 15 aren't buying it. That is they appear to be in capital preservation mode in an increasingly risky market.

But regardless of one's view about this market, one thing should be remembered; It's a marathon, not a sprint. It's the score at the end of the year that counts and the game has only just started.

Here is ...