katie stockton, you still see in the near term here upside momentum. you're probably referring to the s&p, right? >> well, th keye key really is to look beyond the s&p. the market has been in a consolidation phase for a couple weeks if not more in some cases and that's why you get the mixed returns on the major indices, but that frustration really hasn't occurred as much overseas. i would encourage people to look beyond the s&p 500 at the european equity benchmarks many of which broke out from consolidation phases to new multiyear highs. in some of the emerging markets we're getting some nice oversold markets. look at the philippines and china, for example. we're seeing some nice action overseas and i think that bodes well for momentum catching on again here in the u.s. >> jim, it's interesting but steveste i stefil points out if we rally it will be the tenth time so far. we've only sold off four times. there seems to be an upward bys a bias in the second half of the trading day. >> it's hard to tell what's going on with the diurnal patterns. portugal

earnings so far, 65% have beat the street according to fact set, and with more, let's bring in katie stocktont martin, united advisers' chief market strategist and a fox contributor. katie, let's start with you. now, you know, the dow today will end up closing, likely, down. 10 of the first 15 trading days of the year. whatever happened to the january effect? [laughter] >> indeed, we've had a rough start to the year, there's no doubt about that. but really the action that we've seen has been characteristic of a consolidation phase and not much more. we haven't seen a massive pullback except, of course, in some individual stocks. the major indices really are just digesting their gains from november and is december. dennis: does consolidation come before correction, or does consolidation come before the next bump up? >> i think it's going to come before the next bump up in this case. and i say that because if you look overseas, which i would urge people to do, look at the emerging markets already getting an oversold bounce and look at european equity markets having reached new multiyear highs i

let's talk it, on the technicals, katie stockton, btig, on the fundamentals, pat dorsey, president ofaptiva. do you agree with tim ramey at d.a. davidson, would you buy herbalife shares here? >> what's interesting, even though it's up 140% in the past year, it's still not that expensive at only about 16 times earnings, about a 7% cash return. it's a very profitable asset like business model, very cash generativ generative. big ackman's not going away. if you're long the stock, you're caught between two guys with big bank accounts and even bigger egos. i'm not sure how that mays out. i'll watch from the sidelines. >> pat, great ending there. so he would watch from the sidelines because i just quickly before we get to katie, that's my problem with herbalife. it could be the greatest company in the world, but i've also got pretty smart investors over here like ackman and others saying the stock is essentially worthless or at least a short. there's such a divergence of opinion on this. it sounds like it's not worth it at all to mess with. >> yeah, it's basically a binary call. almost like

let's talk about today's market action in our "closing bell" exchange today, katy stockton is back from btig. it's hank smith. ben pace from deutsch bank wealth management. jim lowell from adviser investments and our own rick santelli. rick, you're a hired hand like kelly and i. the rest of you, you're bullish. everybody is bullish on the panel today. ka katy, does that worry you here? >> sentiment is the biggest issue confronting the market from a technical standpoint. if you look at the retail investor sentiment polls, they show that investors are too bullish or overly bullish. i would say that their money probably isn't where their mouth is yet. the market still obviously exhibits positive momentum. that's okay when momentum is as strong as it is. >> katy, we should remember as well a lot of people would prefer to see this market pull back and continue higher, almost unchecked. your colleague pointing out in the minutes from the federal reserve's meeting yesterday, they talk about how they're concerned about these markets, if they appear to be overheated. perhaps in that weird way, t