The way I do that is by using buy-write option strategies.
Strength in the market was primarily in a small group of big caps, particularly Apple.
If this rally is going to gain some momentum, we need to see more-selective buying.
This rally caught many institutional investors by surprise and when that happens they tend to put money in the most liquid names very fast.
The most-important index to watch right now is the Russell 2000 small-cap index.
Tuesday's trading saw a shift in action as small-caps outperformed for the first time in a month.
The action could have been better, but there seems to be a good amount of capital still looking for a place to go.
Some momentum movers are becoming extended and have seen profit-taking Monday.
Let's look at a couple of companies we have covered on these pages before.
The S&P 500 can afford to give back a pretty good chunk here without doing any technical damage.