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Markets are operating in a very narrow trend channel; the sell-off on Wednesday occurred when markets touched the top of that channel and backed off, like clockwork. Markets have continued to stair-step higher like this ever since November. The MACD indicator, at an over-bought level, continues to trade flatly as the market grinds higher. There continues to be a negative divergence in momentum. The Volatility Index remains at historically low levels, and this entire structure in the market is not at all healthy. It cannot continue like this indefinitely, and will lead to a reversion in stock prices. The only question is, 'when?'

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