Looking at a chart of the DJIA for this week’s trading, we see a real sawtooth pattern; I think that this is a trend that we will see for weeks to come. 

In recent weeks I’ve been mentioning that I believe that the stock market is going to adhere to a trading range pattern that could continue well into September, and maybe even a little bit beyond. 

The stock market could be reverting to a more reactive state, something that we have seen in the past, but for some time the market’s focal point was forward looking. 

With a majority of the S&P 500 companies reporting 2nd quarter earnings, the results are not all that terrific. 

Since reaching peak levels earlier in July, a number of technology leaders have consolidated and then rallied back, but the subsequent rallies have not… 

Technology continues it massive lead in the market with the Nasdaq up by nearly 35%, which compares with the S&P 500 up nearly 19% and the Dow is trailing considerably, up just 7%. But one of the storylines here… 

The S&P 500 has notched a new record high and the DJIA has put together a pretty impressive string of daily advances, but still no indication of capitulation on the part of the bears.