"As of last week, the Market Climate for stocks remained characterized by an overvalued, overbought, overbullish condition. This has been historically associated with a poor return-risk profile and "negative skew" - a tendency for the market to establish a string of marginal new highs, and for occasional 2-3 day pullbacks to be followed by sharp recoveries. The pattern is for little overall progress, but repeated slight highs, terminating with a steep, abrupt decline that can wipe out weeks or months of gains in a matter of days. In statistical terms, the mode of the distribution is positive, the mean is negative, and the skew is downright wicked. "I think John Hussman wrote an excellent description of where the market is right now. As I outlined last week sentiment has a little more room before becoming extreme enough to push me to the short side. But as Mr. Hussman wrote this rally is likely to end with an abrupt, sharp fall, which could happen at any time.
-John Hussman in his always excellent weekly missive
I am scratching my head as to why the futures are up so much this morning. It seems to be part of a risk on trade as commodities are also making new highs for the move.