The markets have plateaued for the past eleven trading sessions. The Standard and Poors index (SPX) closed Friday at 4181, down 30 points on the day, but SPX opened the week at 4185, so the index was essentially flat for the week. Trading volume finally reached the 50-day moving average (dma) Thursday and Friday.

The volatility index for the S&P 500 options, VIX, closed Friday at 18.6%, up one point on the day and also up one point on the week.

The IWM ETF, based on the Russell 2000 group of companies, has traded higher for the past couple of weeks, but that ended Thursday and Friday. IWM closed Friday at 224.89, down 3.10 points.

The NASDAQ Composite index closed at 13942, down 120 points, and down about 0.8% for the week. NASDAQ’s trading volume trended higher this week but remains well below the 50 dma.

Recent talk of increased taxes and new taxes seems to have stalled the bullish market trend, resulting in the flat, sideways trend of the past couple of weeks.

I remain with a slightly bullish perspective on the market. The market dipped a couple of times last week but recovered quickly. After all the talk of corrections since the first of the year, I took those recoveries as an encouraging sign.

The cash basis of my trading accounts hasn’t changed much this week, moving from 44% up a bit to 47%. I continue to trade, but cautiously. I am closing as many trades as I open. I closed my SBUX trade early and could have made more money if I waited until Friday, but I am locking in gains when I can and closing out trades at the first sign of trouble.

With a sideways market, it is crucial to only trade stocks that are bucking the trend. Look for charts of stocks that are up on down or flat market days. Be cautious and disciplined. Cash positions minimize your risk.