After four intense days straight up, the markets took a breather. SPX was unchanged at $1819 while RUT tacked on another $3 to close at $1133. SPX delivered a classic doji candlestick, the sign of indecision. This often suggests that the bulls and bears are approximately equally matched; this could be a tipping point to break higher or lower, or it could presage a period of sideways consolidation. The good news for the bulls is that the break-out above the 50 dma appears to be solid. RUT came within a couple of dollars of its 50 dma intraday but pulled back to close lower.

Trading volume fell off with 2.2 billion shares of the S&P stocks trading; trading on the NYSE dropped 10%, but trading volume on NASDAQ edged up 2%.

There wasn't any market moving economic data today. Treasury reported that we are going broke at a slower rate (the deficit, or the increase in debt, is lower four months into the fiscal year). I suppose that's good news.

If you are looking for a return to the strong bull market of 2013, I think that signal will be SPX breaking out above the previous high at $1850. We are a long ways from that happening, but a three day spurt like we had recently would do the trick. But before I rule out further declines, I would like to see RUT solidly above its 50 dma. My best guess is for some sideways consolidation trading, but my crystal ball is a little smudged.