For the past week, investor sentiment has turned neutral. The short covering portion of this rally is over, and stocks will need to advance on their own merit. With resistance looming overhead and stocks having advanced too far, too fast and on too little sponsorship, it seems reasonable that a pull back or consolidation is in order before any advance can be contemplated.
The current bounce has followed the expected script.
"Insider activity slowed dramatically as the final days of Q3'10 arrived and trading windows closed for executives and directors. There were still pockets of bearishness, most notably in the Financial and Energy sectors, but overall market sentiment was Neutral as our Weekly Score downshifted to within whispershot of its 52-week average. Activity will remain constrained for the next three to five weeks as companies prepare to and eventually report earnings."