Market are just floating around with little volume propped up by corporate buybacks Options and open gaps. The trend has become parabolic while bad macro accumulate and the corporate buybacks are in a balckout period.
It thought it would have reversed sooner, but I guess you cannot under estimate the abilities of the Options fumes and insider sellers to push it higher to offload it to the bag holders.
When this breaks it’s goingt to break hard. The rise could be due to the European money fleeing in the US as Europe is in bad macro shape in the Europe index has a take a turned south recently.
Because most investors buy indexe ETF, there is a significant danger that the underlying stocks go No Bid if a crash occurs as the ETF holders sell their positions and this forces the ETF Fund manager to sell as they have to maintain a very small cash position to match the underlying index performance.
Europe is now in Bear territory and the next move down will fall hard.
The S&P500 serpent is out of the channel on declining volume since the last swing. The new high is not validated by my indicator.
Danger Danger Will Robinson!
The market almost never correct around the the 4th of July for some reason. They could make the sectors rotation musical chair go on a bit further. A crash during the USA birthday holidays would be unacceptable!
TIC TAC, TIC TAC