We are at the top of a trading range. Everyone's willing to be bullish, but is the cash there to provide the energy the bulls need? Or is the December high the high-water mark? Dow 11,000 is one of the hooks the bulls will use to try and attract more money into the market.
What would make me more optimistic is if there was evidence that money on the sidelines is being put to work. But I'm not convinced.
Liz Claiborne is one; Tommy Hilfiger is another; Jones New York. There are a lot of them that look good now, ... People aren't going to spend their money on some things, but they're spending it on others.
You're seeing the fast money shift around a bit, and short term, that's good for stocks. Longer term, you have to consider that at some point, energy prices are going to catch up to the economy and the market.
They haven't so much moved their money out of the markets as they have moved it from one place to another.
The correction is likely to go on for another month or two, ... before there's really a compelling reason for investors and traders to move more money from the sidelines into the markets.