Yesterday we began to focus on what to buy on pull backs. Today I continue that thought with seven charts in a sector that has led the past months rally. They will probably continue to do so if the market signals a further advance after a pull back.

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Markets around the world have been working their way higher on suspect interest. Last night Japan continued but most others began to give up some of the recent gains. Our futures are down to start the day as well.

To try and be clear about what I'm thinking, I don't expect a collapse in the indexes although anything is possible - especially in these markets still. What would make more sense would be some sort of pull back that comes on light volume showing us that volume just isn't a serious issue right now. That would give us a better feel that this is slow accumulation going on, not a abject lack of interest.

If it weren't for a lack of volume, this would be a good looking rally on both price and volume, but you only have price, not volume on the rise. You end the day with the OTC saying we can go higher still and the listed issues saying not so. The problem with all of them though is that unless more buyers show up it doesn't matter as it will run out of steam no matter what reasonably soon.

Although the signs are everywhere that this is a market that you cannot trust nor chase, trusting and chasing seem to still be the order of the day as trader buy into semi's, big cap tech, oil related and even financials today.

Despite the continued buying, there's no evidence of conviction as would be expressed through a build up in volume ... instead we see another low volume advance again today. That's a real problem as we should have all the players back now yet no one is all that excited to put significant portions of their money on the line in long positions.

Tech still holding up well along with financials and oils but there are cracks in the facade of higher prices near term and we have retrenched even further with our thought of a pull back hedging a bit more into strength and taking a few more profits off the table. I do not like the way this market looks today.

Alway looking ahead ... that's what you have to focus on ... what's next. We are seeing strength in the markets again this morning but the odds are that strength will fail as the volume just isn't there and the oscillators we watch are overbought. So you take the strength of the past two weeks and you consider what was strong during this period - what sectors showed us relative strength. Oils are an example. Basic materials are another. You have to judge what you want to potentially buy on the way back down so let's take a look and see what might be a good buy on the way back down and how we can tell.

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