Headlines took center stage yesterday, and the result favored the bears rather than the bulls. The first piece of news was a disappointing ISM Services Index number, which accounted for a tumble in the indices at 10 a.m. But stocks quickly recovered and were ahead about 50 points when the Fed’s March 15 FOMC minutes were released, showing that although the governors were solid on their outlook for the economy, their view on inflation had turned to “vigilance.” And that was enough to send stocks down and precious metals and other commodities higher. (See more of yesterday’s stock market news.)

Although volume was again light, the sell-off did have an impact on the “non-confirmation” issue that we discussed yesterday. Note the lack of new highs in the current move on the charts of the three broad averages that we discussed. Only the Russell 3000 has exceeded its prior high — and that by just a fraction of a point.

Also note another non-confirmation issue — Moving Average Convergence/Divergence (MACD) bottom trendline. In every chart, the recent low was lower than the prior low, and the Nasdaq chart shows a lower low for the upper trendline as well. Only a dramatic breakout with mega-conviction can solve this problem for the bulls.

Remain cautious. It appears time is running out for the bulls.

For one ETF to buy now, see the Trade of the Day.

Today’s Trading Landscape

To see a list of the companies reporting earnings today, click here.

For a list of this week’s economic reports due out, click here.

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.