Most indexes could sell off, even though most indexes made new highs today. Why? percentage of stocks above their 20 and 50 day moving averages did not make new highs for spx, midcaps and small caps. Also ISE investor sentiment index way too optimistic.At any rate I believe that this is a dangerous time to add to new positions. Eddymush love to hear from you.
Last 3 days spx has had lower highs lower lows and lower closes. The losses have been small but we are making lower highs so if we cannot stay near recent highs and grind our way higher we can only grind our way lower and then pick up speed. Also ISE sentiment index is an extreme which argues for a sell off. And profit to the upside is so limited most managers are either on the sidelines or slowly adding to their cash positions. Risk reward does not favor the bulls presently.