One of my friends was asking me about how I viewed the market. I have gone through the valuation of the market (and perhaps this post as well) and how we look at things from the fundamental perspective. The price in the market is an aggregate of the fundamentals and the psychology of the participants. If we look at the price data from various angles, going through each of them individually but going through enough of them, it gives us a sense of things. And the market is telling us that the second year after recovering from a big drawdown may be a muddle through the year where things work themselves out. The main stocks that drive the market are limited to a few companies, but beneath that, as an aggregate, the market is showing weaknesses. There are also not a lot of bearishness. The absence of bear as a contrarian sentiment indicator seems to be pointing to a lack of cautiousness....