Redline - Too Much, Too Fast

The market has moved so fast and blown through all resistance levels in a few days. We are extremely over bought in the short term and looking for the market to pull back. The S&P has moved up over 13% in last 12 trading days without even giving back 2%. Very unusual and not normal market action.

Whether it is computer related buy programs and/or high frequency trading driving this up, we are seeing a fear of missing out in the market.

So, we are positioned for at least a small correction, if not something bigger.

Remember the Nasdaq in 1999 to 2000. The further the market goes without a setback, the harder the fall when it develops.