The market moved up sharply today on heavy volume – quite bullish. Ok, so what was not bullish today? Here’s the checklist:

  • Junk bond index SHIAX is down
  • Junk bond index HYG is down
  • McClellan oscillator down
  • $BPSPX bullish percent index is down
  • TRIN oscillator overbought
  • Credit-default swaps are slightly up, but they are well below last week levels

Don’t get me wrong – I’m not saying that the market will crash right now, but I just don’t see a reason for a sharp rally either. I expect sideway action with some down days below today close