It's true that the trend is your friend, but what happens when there is no trend, and paranoid traders are trying to find cracks in the facade?
That's where we find ourselves now. The S&P is up fractionally for the month, a few points from an historic high, and clearly remains in an uptrend.
But the momentum has faded. In the beginning of March, all of the major indices were in overbought territory. That's no longer the case.
Wait, working off overbought conditions is generally considered positive —but not in the alternative paranoid universe many stock traders live in. Many are starting to get nervous, but I don't see grounds for panic.
One concern is small caps — the Russell 2000 has been a poor performer most of this month, but that trend has largely reversed since the Fed meeting.
Transports are weak this month, down 3 percent, but most of that is due to the poor performance of airlines, mostly on capacity worries (too many seats).
More interesting is the trend in the 10-year Treasury. At 2.5 percent, it's at the lowest level in nearly two weeks. The yield curve has been flatter. There's been a predictable effect on bank stocks, which are down on the month. The Bank ETF (KBE) is at the lowest level since early February.
What's going on? I'm not sure, but it's been a joke for years that bond traders somehow, magically, know more than stock traders, so the stock guys think the weaker bond yields must mean that something is wrong.