- I have heard "dont fight the tape" more times today than I have in nearly a year. This is not something you hear at a bottom.
- The CBOE total put/call ratio and equity are at extreme levels not seen in nearly a year as well.
- There is almost no discussion of macro issues anymore.
- The top callers have given up. Even though sentiment has been bullish for a while now many have been looking for a short term correction. I am no longer seeing that anymore. Or at least those looking for a pullback are not willing to bet on it.
When Will This Rally End
If this rally somehow manages to last through next week we will be intermediate term overbought and I could just imagine that sentiment would be gaga, given how frothy it already is. It would be a magnificent short term risk/reward short if it happens. I am seeing numerous signs of froth today that might mean the rally will not last that long: