The massive up-crash we’ve seen since March has been alarming. Previous bull markets in history have typically been accompanied by some profit-taking and healthy backing and filling; that’s not happening with this rally, which has been characterized by vicious rallies almost every other day without a pause or correction. I don’t like this action.

I think it's safe to say that a good part of this rally has been short covering. Don't forget, one of the major drivers of markets over the last few years has been hedge funds. There's still enough of them left to have an outsized effect on the market and many of them were short during the recent decline. I expect when they've covered we'll go back down and retest the lows. Note the drop in volume (S&P500) over the last 2 weeks. A healthy rally should have increasing volume and we're just not seeing it.

ebear