Getting Interesting

We are finally seeing volatility in this market.  You don't see a sharp decline into the close unless there is fear.  Traders do not want to hold stocks overnight, because all of the negative catalysts are overseas.  It was odd to see the ES sell off on the Chinese GDP report when Chinese shares actually rallied after the initial dip.  Europe is a black hole, but everyone knows this and the ECB will paper things over when the market begs for it.  Longer term, a very bearish picture is developing, but we shouldn't jump the gun.  I still see this as a dip to buy (US stocks only) because of the extreme strength of the trend and the limited time we've had to consolidate this up move. 

The global equity rally is narrowing more and more, now its basically just US equities going up, and within US equities, mostly just tech carrying on the show.  This will end badly because a stock like AAPL has nowhere to go but down now, it is so oversaturated in its market and margins will get squeezed.  But the market will be in denial as fundamentals deteriorate as is usually the case.  There is still more time to go in this rally before the train gets full.