With volatility as measured by the VIX once again approaching 5 year lows, the market has reached a point where it’s going to need to pause … likely very soon.
Go to the Analytics section on the TradingMarkets site and go to our Screener. Then sort all stocks by their 2-period RSI from highest to lowest. Coming into today you’ll see more stocks with 2-period RSI readings above 90 than any time this year (the number above 99 is as impressive).
As I keep repeating here, the bull market remains in full force. This will likely continue for quite some time especially if Janet Yellen (based upon her Senate confirmation hearing I have this urge to refer to her as “Mrs. Claus”) is approved and the Fed continues its free cash policy. Shorter-term though the market is very close to pausing/pulling back for at least a few days as the stretch on a daily and weekly basis has gone a bit too far.