Two things have struck me over the last two days. First, the markets have barely been able to squeak out a gain around the State of the Union address. Usually, it is a no brainer up day before and after the presidential speech. Secondly, the market have reversed on extremely light volume both days, off their highs. Usually, on light volume it is almost impossible for the markets to sell off.
What Does This Mean?
It means the markets are getting tired. In addition, it means the stream of retail investor money is stalling out and institutions continue to not buy at these market levels.
We should see a small pull back enter the market as soon as volume resumes, as early as Thursday into next week. The pull back will be minor, just a few percent but will take hold.