The violence between Israel and Lebanon kept the market handcuffed today. Events are still unfolding there and many market participants decided to simply sit on the sidelines and wait until next week before making any moves. Sellers who were anxious to lighten exposure had few gamblers willing to take their shares. That pushed the indices down on better than 2 to 1 negative breadth.
Next week should definitely be an interesting one. We have the first big group of earnings reports, lots of news coming from the Fed, economic data and further developments in Israel. I don't how its going to play out but there is no lack of potential catalysts and we are likely to have above average volatility.
It's been a rough week for anyone long stocks but that is the nature of the business we are in. The key is to not let this poor action rattle you and to make sure you stay in a positive and constructive state of mind. The market is a marathon with endless opportunities. You just need to keep on plodding along.
Rest up this weekend and do something fun. We are going to be very busy next week. I'll see you on Monday.