Before the Open (Sep 16)

Good morning. Happy Wednesday.
Yesterday was the 8th consecutive day the SPX exceeded its high from the previous day and the 4th consecutive day a new high was registered. The market keeps going and going and going. It hasn’t been exciting, but it’s not worth fighting. And the S&P is not alone. Every index is at a new high. Here’s the daily chart. …


As you can see, yesterday was the index’s highest-volume day in two weeks. In my opinion, high volume at these levels is more bearish than bullish. It’s a sign traders/investors who missed the rally are chasing. It means they may be in panic mode because they wanted to buy a dip that never happened. Now they’re afraid of completely missing the move, so they’re jumping in with reckless abandon. I’m not predicting a top here (a top could take a couple weeks to form), but if volume continues to be strong, to me, it’s a warning sign.
Here’s the 60-min chart. The index is broadening. Dips are shallower than previous dips and rallies are greater. This too isn’t a great sign…especially given the S&P sits right at the bottom of its thin zone (see chart posted yesterday).

But again, I’m not predicting a top…just making an observation. The trend is up, so that’s the way we should continue playing the market. Don’t get complacent. More after the open.
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