Heres what Mel says:
The Market Environment for Tuesday is -3. Greater than three is bullish and less than negative three is bearish. The short-term trend appears to be sideways. Mel's 5-Day Oscillator is 76 and Mel's 10-Day Oscillator is 68 (below 35 is oversold and above 65 is overbought.) Based solely on the technicals, our bias is slightly bearish for Tuesday's session.
There isn't much that can be said after a session with a -0.03 SPX net loss, especially after eleven consecutive sessions without a 1% net change and a total change during that timeframe of 27 points, averaging less than 2.5 points per day. Eight of the last nine sessions have seen the SPX move three points or less. It is truly the Dog Days of August as the market moves sideways but generally creeping upward on very low volume without institutional involvement.
Technicals simply are not changed by such action. Market breadth remains weak but this market is carried by a handful of large ultra-cap companies. Looking at Tuesday, it becomes difficult to imagine what could make tomorrow different than today; a redux looks probable.