After the rally of the past 9 days, the markets are somewhat overbought. Some consolidation might make the ensuing move more sustainable. The number of SPX stocks reaching 30 day highs has broken the peaks of the previous 2 years (see chart).
% of S&P 500 Issues Reaching 30 day Highs
Source: Redwood Technimentals
The back and filling action at this point would be a healthy sign that the markets are not getting too far ahead of themselves.
Quote of the Day:
The measure of success is not whether you have a tough problem to deal with, but whether it’s the same problem you had last year.
– John Foster Dulles (1888-1958)