Everyone is Bullish, perfect time to short with stops in place of course. Below is a simple chart of one way to look at market internals. Lets see what is going on under the hood.

The chart shows OEX or SPY with NYSE 3 month new highs using a line chart. The purple line going up is OEX or SPY. Basically what this is saying is the market is going higher on less participation not more.

The ovals are current recent market highs, 3 including today, showing clear divergence.

Notice the trend of NYSE 3 month new highs near the left side, leading up to 4/20/16, it showed bullish momentum. That seems to be breaking down thus far as prices have been in rally mode since "Brexit".

This does not give me a reason to buy this current rally high, I already closed my long position and made my profits.

Sentiment is off the scale as we are getting divergences on oscillators and market internals. This is the bread and butter right here, no fluff.

Joseph VanDerveer is the Chief Technical Analyst with 8 years experience in the trenches trading the markets with a brand new website and service at www.doubleplayoptions.com

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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