Stocks Rise, Then Fizzle In Low Volume

For the second straight session, stocks began the day strong, then retreated to a slack finish.

After being up as much as 0.6%, the Nasdaq finished down 0.1% Friday. The S&P 500 and Dow inched up 0.1% each. The NYSE composite tacked on 0.2%.

Volume fell across the board.

The day's chief positive was that the ups and downs occurred in lower volume as the market consolidated its recent run-up.

The stock market didn't panic on news that a South Korean navy ship sank near North Korean waters. The cause was unclear.

Yet good news had little impact as well. Europe came to an agreement on how it would deal with Greece's debt crisis, but the boost from that was short-lived.

Although the market remains in a confirmed uptrend, the recent action — negative reversals and distribution in three of the past six sessions — is raising doubts.

The indexes have climbed to new highs this month and dozens of stocks have broken out, but only a few have risen sharply.

On Friday, action continued to be ho-hum for the leaders.

Such indecisiveness has defined this uptrend, keeping gains and losses in check. The market appears to be waiting for a catalyst that shows true conviction.

In a couple of weeks, earnings season will begin for the first quarter. That could reignite or toss cold water on the uptrend.

Still, there's always the possibility that nothing will significantly move this market. The rules for investing in a directionless market are the same as any other.

Sell any stock that drops 8% below your buy point. Don't let gains cycle into losses. Buy only during a market uptrend, and lock in gains in individual stocks when the chart gives sell signals.

The Dow was up 1% for the week, the Nasdaq 0.9%, the S&P 500 0.6% and the NYSE composite 0.2%.