The intraday momentum has slowed but the indices continue to hold up well and breadth is extremely strong at better than 3-to-1. Chasing strength has worked repeatedly, so it isn't a big surprise that the bulls are feeling very confident right now. The lighter volume of the last week of August has worked in the bulls' favor, and that is primarily because it is easier for the computer algorithms to assert their influence in this environment.
I've been doing some selling today and have added back index shorts like Direxion Daily S&P500 Bear 3x (SPXS) that I had sold when the market gapped down on the Korean missile news. My thinking is that with overbought conditions developing and negative seasonality occurring next week, there should be potential for at least a small dip.
I am not finding much new to buy, but I did add to a small position in Aurinia Pharmaceuticals (AUPH) , which has been basing in a tight range for a very long time. Sometimes when the base of support is too long, there is a greater inclination to sell into spikes as the holders are growing impatient after a long wait. They are happy to finally book some gains and to free up the cash again. That has happened to AUPH several times, but with the strength in biotechnology lately there may be some folks looking for new merchandise in the sector.
I would not be surprised to see the market hold up today as it is the last day of the month. If we close weak today, that tends to support strength tomorrow, but I'm not expecting that to happen.