Wow

A very unusual thing happened in the market last week.  The Nasdaq rose 1% but the number of stocks that make up that index which declined exceeded the number of stocks that rose.  This means that more and more of the gains are coming from less and less companies.

That is not good for the markets, and it is so rare it usually means the markets are signalling a strong change in direction; down.  Coupled with that we had the quickest decline in volatility recorded.  A drop of nearly 50% in less than two weeks.  Declining volatility is like oxygen to the stock market, but that record move only moved the main indexes 4%.

This tells me the market is exhausting itself.  The risk of being in the market is now exceeding the risk of being out of the market.

https://twitter.com/sentimentrader/status/622119090308542464/photo/1

Look what happened the last time this occurred.