A piece on Barron's today listed a couple of cautious signs:
Personally I think the cautious sentiment is healthy to the newly started rally.
- Possible end-of-quarter window dressing
- Cautious comments from prestige investors
- Anemic trading volume
- Investors park money in money market
We just passed an exhaustion bottom - It's a round shape on the chart. Market sentiment is at inflection point. It is understandable to be cautious. This explains the low volume. Plus there is a major holiday next week. A couple of fear factors, such as TED spread and Libor OIS spread are all in the comfort zone, indicating the credit market is still stable.