A little issue

Right now, there is an almost perfect dichotomy between market environment and sentiment. The environment has been pristine, with very few cracks under the surface. That type of activity consistently leads to higher prices. Sentiment is almost universally extreme, the type of activity that consistently leads to lower prices. The outlook for stocks will shift decidedly negative if and when there are cracks in the environment, such as the major indexes masking deterioration under the surface. This is a very minor issue, but the Nasdaq's big gain on Wednesday occurred with some of the fewest advancing stocks in 35 years for a similar move. Not enough to be a worry yet, but this is the kind of thing that will make all of those sentiment extremes suddenly a major issue.