Market Position: Neutral-Bullish.
While we cannot ignore the strong price action as the market breaks to the upside, we cannot ignore technical signals that point to caution. SPX is bouncing up against resistance (for a 3rd time) since its January 2009 high. Each break upward since March has been on lighter volume (part of which can be attributed to lower seasonal activity). The Put/Call ratio at .74 is nearing the low levels where market pullbacks have occurred. VIX (albeit bullishly low) has gapped below its EMA to an extreme. Also, the Nasdaq has incurred a few too many “gaps up,”and financials relative strength (after a few strong days) has flattened again.