Cautious At These Levels

Yesterday got off to a great start then the pre-Holiday grind higher began.  I never trust them.

HYG and JNK are starting to flash warning signs vs. IYG and SPY.  HYG and JNK gave advance indications of the rally from the 6/25 lows.  Now they are diverging negatively.

Because we are over 1363.46 yet starting to grind, I'm not interested in trying to catch every tick to 1380-1400.  The market can roll over at any time.

Yesterday felt like a smaller degree 4th wave than I was looking for.  Unless we pull back into 1352.50 or 1344.55, two 38% retracement levels, we could grind higher in a rising bearish wedge.  As it is a shortened session today, the bias is for the market to close on its highs.  Better opportunities will appear most likely later in the week. 

In other news, never letting a crisis go to waste, the good folks at the Associated Press are making sure we get our daily dose of required propaganda.

Even though it's been widely exposed as a hoax we're told This US Summer Is What Global Warming Looks Like.

And the whitewashing operation has begun in Minority leader: Odds long to undo health care law.

The Tax is now a penalty because only the Republicans will call it a tax.

Chief Justice John Roberts, a conservative, provided the pivotal vote in that decision by ruling that the penalty was legal under the government's taxing authority. While technically handing a political victory to Obama, Roberts' ruling invigorated Republicans eager to cast the law as a new tax.

Happy Independence Day.  Enjoy it while we still can.