Today was another weak day for the machine. Both buying and selling pressure were weak, with buying outweighing selling by a small margin.

We are less overbought than we were earlier this week, which is a start, but I still think is prudent to remain cautious. I say this because we are right at the 200-day, and the machine isn’t showing any accumulation. I know a lot of you have made the observation that a whole bunch of garbage stocks are punching ’staches higher.  When those quality stocks start making the big moves, I get suspicious.  As a common courtesy, I’ll just make this obvious newsflash: Chinese burritos are not going to lead the market.

Other stocks need to join the party. That would require a lot of buying. Viz., a breakout with a lot of buy interest. That would get me excited.

Again, with minimal buy conviction, and remaining overbought conditions, I remain skeptical of initiating new positions here. The market is still in a bull run over a quarterly timeframe.

The current complacency won’t last forever. We are around too meaningful a zone. I remain poised to take advantage of two situations: a breakout with strong buy interest or a sell-off, that I will use to add to my strong stocks.

With such an easy market it may be easy to forget that the longer term trend, the 200-day MA, is still sloped negatively. In other words, down. That’s why I have to be more cautious about the lack of buying.