The indexes continue to grind higher with the S&P 500 hitting a new all-time high. There was a brief pause on Friday but the S&P is up five of the last six days and remains unconcerned about any and all negative arguments.
Breadth was about 4,500 gainers to 3,000 losers, which was OK, but what is most notable was that there were 450 12-month highs to 235 new 12-month lows. That is surprisingly soft for a market that has been making a series of new highs. The main reason for this is that small caps iShares Russell 2000 Index (IWM) are still lagging, while bigger cap stocks like Microsoft (MSFT) , Amazon (AMZN) and Apple (AAPL) are leading. The big cap leadership is a product of index-driven action rather than a focus on stock picking.
Many market players are struggling to keep pace with this relentless buying and there are plenty of jokes and comments about how the buying will never end. That is what happens when there doesn't seem to be a common-sense reason for the very lopsided action.
The arguments against a continual rise are piling up, but they are having no impact on the action. Their only fear that is out there seems to be fear of missing out. Even the most bearish bears are sitting in cash, rather than trying to short this market that is overwhelming even the bulls that can't put money to work fast enough.
The most tempting thing to do is to declare that it can't continue much longer, but market timers have been doing that for weeks and it hasn't worked.
Stay focused on the price action and don't rush to make a move until it changes.
Have a great evening. I'll see you tomorrow.