For weeks now, the question traders have pondered is whether today will be the day that the pattern changes. It has been an amazingly consistent market in 2017 -- with all dips being bought and strong closes nearly every day. It obviously can't last forever, but those that have tried to guess when the action might shift, have been dismantled by the market beast.
The indices started off a bit slowly this morning, but managed a routine bounce before another fade. Now we are seeing another drive back toward the highs of the day, but will this finally be a day when the indices stumble and close weak?
I have no idea, but even if that does occur, it won't have any impact on the fact that we still have a very strong uptend in place. The best thing that could happen is some consolidation. A weak close and some anxiety about whether a top is forming would be ideal, at this point.
This market action has been so lopsided lately that the contrary indicators are really piling up. Everything from sentiment levels, hedge fund investment levels and P/E ratios are at extreme levels. You can be sure that all those things will be pointed out when the market does finally correct, but, as I keep saying, it is all about timing -- and so far there is no indication that this extended market is about to turn.
I like the way Sarepta Therapeutics (SRPT) is acting. It is a bit like Global Blood Therapeutics (GBT) , which had intense action by shorts, but when it finally turned, it went parabolic very fast. SRPT is at a different phase in its operation, but it has some "haters" that could help to fuel a short squeeze if it gains further momentum.