Good Morning, Traders. Reversal and inside day on Monday which is typical after a strong advance such as we had on Friday, which included a large gap between Thursday's close and Friday's open that has yet to be filled. All three major averages spent the day in a slow sideways grind with the Dow closing up roughly 7, the S&P losing ground by about 1, and the Nasdaq adding 2 and a half. ZZZZZzzzz. A snoozer of a day where nothing was changed technically. A correction by time and not price if you will which is bullish. Overall volume fell as well which would have to be another feather in the bull's cap as well as lower volume in consolidation is what is necessary for markets to eventually move higher. The odds still strongly favor the Dow pushing about another 170 higher to test the January 2000 highs. For now stay the course long until we see how the Dow reacts to this very key, and history making level.

Peter Reznicek is the Chief Equity Strategist and a principal of the Prana Fund, a domestic hedge fund, and ShadowTrader, a subsidiary of thinkorswim which provides coaching and education to its clients on both intraday and swing trading of equities. For a free trial to the full version of The Big Picture or to learn about ShadowTrader's other services, visit shadowtrader.net or send an email to preznicek@shadowtrader.net.