This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: Too Quiet

Updated from 7:57 p.m. ET to include commentary on Tuesday's economic data.

NEW YORK ( TheStreet) -- The Dow Jones Industrial Average and its frustrating quest for 13,000 is getting more digital ink, but the bulls are likely paying more attention to the S&P 500 and its inexorable march higher.

So far in 2012, the S&P 500 has finished up nearly 70% of the time on a daily basis, rising in 26 of 38 trading sessions. The index closed at a multi-year high of 1367.59 on Monday, staying at pre-financial crisis levels, and the intraday peak of 1371.94 was a new high for the past year, eclipsing a level last seen in early May 2011.

The big question now is when will investors who have ridden this market up more than 20% since the October lows take some profits? What will the S&P 500 do now that it's coming up against some chart resistance? Things are just a bit too quiet for comfort at the moment.

Both volume and volatility are low, and the violent swings that dominated market action from August through October are off the menu. Everyone's bullish from Dr. Doom to the Oracle of Omaha, who might do with a reminder from one of his old shareholder letters.

"Investors should remember that excitement and expenses are their enemies," Buffett told Berkshire Hathaway's (BRK.B) faithful back in 2004. "And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful."

The market sentiment right now is up, up and away for equities, i.e. greedy, and that would seem to indicate it might be smart to be at least a little afraid. Sam Stovall, chief equity strategist at S&P Capital IQ, had this take on the market's mood on Monday.

"How can a more-than 4% month-to-date (through February 24) advance in the S&P 500, on top of a 4.4% gain in January, cause investors to feel a bit unnerved?" he asked. "Answer: When it comes during a more than a 24% surge off of the October low, with the last 2%+ single-day decline occurring on December 8 and the results for the second-worst month for the market have been anything but."
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JPM $62.16 -2.60%
ODP $5.68 -2.60%
PCLN $1,341.82 -1.10%
AAPL $94.07 0.46%
FB $117.55 -0.86%


Chart of I:DJI
DOW 17,723.48 -167.68 -0.94%
S&P 500 2,058.12 -23.31 -1.12%
NASDAQ 4,756.1530 -61.4410 -1.28%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs