Too Far Too Fast

As much as I loved yesterday's rally, this chart suggests caution. It went from a buy signal to a sell in one day as if to say the market may have gone too far too fast.

Hope is in the air for a debt ceiling deal, yet this morning's news hints it may be premature.

Gold broke through the August lows of 1271.80 which could possibly now target the neighborhood of 1,000. There is certainly not any inflation fear there.

Oil was down as far as 9.9% from its summer highs this morning. Yes, people are noticing, but few are mentioning that it may have something to do with demand, as in "a possible indication of a slowing economy."

LNKD, FB, TSLA, P, TRLA, YELP all went up yesterday . . . on lower volume.

Europe is mixed this morning, whereas yesterday they were solid green.

Until 1696.55 is exceeded, this market may have a few Halloween tricks up its sleeve. There would be nothing at all wrong with a retest of 1675 after such a strong upthrust. It may even set up a great buy.

However, I'm seeing and hearing a lot of exuberance. I found this on Marketwatch --

No Taper seems to be the catalyst for all scenarios. No one is viewing it as a sign of underlying weakness, or that the Fed is actually in a liquidity trap and is pushing on a string.

Should it ever materialize, I would view 1730 as a gift.