Although the news headlines have to blame/credit something, yesterday's stock market action was really nothing. Major indices remain well within recent ranges although breakout failures in several seem less worrisome now. It’s almost as if the market really is tired and with little news on the horizon it decided to take some time off. Not a joke. The market looks to be on holiday. Post Labor Day volume is not much better than pre-Labor Day.

We'll jump right in to the hourly chart:

The expanding phase seems to be over and now a contracting phase is starting. It is like a diamond top but here we have a flat bottom. Does it matter? Probably not. More than any pattern what we see is sideways action with no real hints in momentum. Not shown in this hourly chart is rising on-balance volume but does that make sense in this time frame? We are not sure but if anything it cannot be bad.

That's about it for comments. The only point of interest is that German 10-year yields backed up over 1% again. They are still ridiculously low.