The current stock market is very susceptible to news, because the lack of conviction on the part of both buyers and sellers. This leaves the daily moves in the hands of traders who bounce the indices from support to resistance in days, resulting in extended periods of range-bound trading. If the pattern continues, a solid move in either direction could be postponed until next year.
From August to November, A lot of rallies has been forced by liquidity, and once that injection of cash stops, I suspect the market's ability to launch another rally.
Jobs are still missing in this rally, housing prices are still relatively weak, earnings were better because the projection was so low, and ultimately, there's not a real big reason to buy stocks.
Ireland has formally requested substantial "financial assistance" from the European Union. The money is required to avoid the collapse of Irish banks, which have seen a major outflow of funds over the last year.
Personally, I still suggest traders or investors to lighten their stock holding on the way up of this rally.
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