Overall markets recovered toward the end of the day and SPY closed on a doji and still the held the 8 ema, this tells me the potential for a break out to new highs in the indices is still there.
DIA also put in a doji giving the same indecisive sideways bent - waiting for some momentum - mid-day bears were getting a little jiggy but they were only trapped without the support of any major distribution.
IWM closed green above the 8 ema and above yesterday's close - looking like it is ready to turn the corner - not too surprising as the small cap power period is looming.
Qs put in a doji sandwich and just closed over the 8 ema but it is certainly a bullish signal and it appears that markets are just holding off on taking their next move while they digest reaching new highs.
Markets correct in one of two ways - they can either go down or they can go sideways - sideways action acts as healthy consolidation and allows bulls to be ready for the next move.
In the chat room, JJ just pointed out that markets have been going sideways since Oct. 30 but this is the easier way to correct over the alternative. I'll take it.
All in all, the markets like those few leaves on the tree in my front yard are "not dead yet...." Please enjoy this clip from Monty Python and The Holy Grail.