The US economy is muddling along while the rest of the world is slowing. Valuations are reasonable but we are starting to see weakness in corporate profits. Traders seem to be getting bolder while hedge funds are still positioned conservatively. It is very difficult to get conviction on the long or short side regardless of the factors that I look at.
In the very short term the market has run very far and we received bad news out of Europe. That leads me to believe that the upside will be difficult in the short term. But a few days of the market going sideways or down would change that.