As the equity market keeps extending the internals do not support much more of an extension. I will leave you with a quote from Lowry's...and a blurb from their latest piece.
"The bottom line is, the current rally appears to be based on increasingly weak
underpinnings.
By a number of measures, including some that generate relatively infrequent
signals, the rally has become overextended. Meanwhile, investors appear to be
growing more comfortable with the idea that any interruption in the rally
should be very brief and likely followed by moves above the April and May highs
in the market indexes. All this is accompanying a rally that appears
increasingly dependent on a lack of selling. Yet, extended prices and a sense
of complacency is probably a combination more likely to lead to an increase,
rather than a decrease in Supply, especially in the event of any unexpected bad
news. And that could bring a quick end to the rally."
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