I, of all people want this market to go higher. Having spent the last two trading years of my life in a range that was the tightest of anything seen in 21 years has been exhausting and limiting in its opportunity.
However, there are a few things that need to improve underneath the surface, one of them being the T2108, which represents the percentage of stocks trading above their 40-day moving average.
Right now it is up a cool 8% on the day, and overall 70% of stocks are trading above their 40-day moving average. That is good on the surface, and where historical levels usually are, but when you dig into its daily chart, you see a noticeable pattern of lower-highs and lower lows that has yet to be broken, just yet. Further more, you have a well defined trend-line in place that it continues to respect and is now in a place where it wants to test it again.
Break through that downtrend, and it adds more legitimacy to the new all-time highs established today. Get rejected there, and I think there is an increasing chance that we are at that short-term top everyone is trying to figure out.
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