The stock market continues to trade sideways in the wake of the tense situation in the Middle East. Following Iran’s retaliation against US bases in Irak, the S&P 500 futures fell during the night as low as 3180 before recovering. Our indicators still paint a picture of an overbought market and some daily sentiment indicators are pointing out to too much optimism in the option market. Ideally, the consolidation/correction should continue somehow until our model gets back to the neutral level at least.