Bottom line
- The market environment is pristine, but with near-historic optimism, gains tend to be muted, with a high probability of being reversed at some point over the ensuing weeks.
Market environment (More info) Positives Negatives 1. Price pattern 1. % of Stocks in Correction 2. Moving averages 3. McClellan Summation 4. % Stocks > 200-Day 5. Net New Highs / Lows Sentiment / Breadth / Other Positives Negatives 1. Big up volume (and again) 1. Confidence at record high 2. Surging small-caps 2. Too much options speculation 3. Surging tech stocks 3. Equities high vs GDP, Assets 4. Mar-May thrusts, recoveries 4. IPO market too hot (and here) 5. Excess liquidity is high Other Sectors and Assets Positives Negatives 1. Energy (here, here, and here) 1. Skewed tech (here and here) 2. Dollar test