A number of countries which are in bear markets bounced yesterday and now much of the world, especially the US is short-term overbought. Since the bottom in mid-October, the S&P has risen without any type of pullback. If you overlay the 5 period ma onto SPY you will this fact. It’s now gotten into rare territory and eventually a short=term pullback will occur. But until proven otherwise, the Fed has made a concentrated effort to control volatility – in my opinion it’s become priority – and therefore the longer-term path of least resistance is going to remain higher until some sort of event surprises the system.
Any pullback in the indexes should be viewed as short-term buying opportunities.