Stocks Follow Yesterday's Trading Pattern

Today the price action in the stock market was similar to yesterday's price action except for the opening gap. Yesterday stocks made a low around 9:15 and rallied into the afternoon but sold off into the close and that is exactly what we saw happen again today.

The S&P traded up to yesterday's high but was unable to break through. There seems to be a little bit of a tug of war going on between the bulls and bears and I think the next few days will be very telling as to which way the stock market will be headed.

Yesterday oil stocks were very strong but today they were one of the weakest groups. Homebuilders were leading the rally early in the day but by the close the gold stocks became the strongest group of the day.

I still would like to see the S&P (SPY) trade into the gap which is the 111.00 area where I may consider putting on a few shorts.