The market is forming a small range here. Technology is the new leadership theme for market and when the market correction is over the sector would be ideally placed for rally. The biggest area of concern is small caps. The speculative favorites are the ones which are showing weakness. That is on of the reason the 65 days ratio is stuck in negative territory.
In the short term the low volume holiday environment is bullish and with one of the indicator (stocks up 50% plus in month at 2) showing possible strength around, we will likely see strength. The market is ideal environment for day traders and short term traders. Nimbleness is the key.
With Nasdaq showing strength the post holiday action might offer some opportunities for light commitments in technology sector. Number of stocks in the sector are showing relative strength, but again most of them are in the large cap technology area. However if the overall market gets in to downswing, much of this pocket of momentum in technology sector will not be able to sustain its up move.