From Cabot Top Ten Trader
Overall, we’d say the story remains largely the same—there are some chinks in the armor overall, including some tertiary sentiment stuff (especially in the options markets) and short-term momentum measures (as the Nasdaq tested its highs yesterday, just 100 stocks hit new highs vs. 200 six trading days before). There’s also been a lot more up-down-up-down action that, after a sustained run, usually tells you the bears are starting to put up a fight.
After 13-plus weeks up that’s brought some amazing moves in stocks, it’s certainly possible the rally could run out of steam, leading to an outright correction or a longer consolidation. But it’s usually best not to guess at these things—right now, the trends are up for the major indexes and leading stocks, while abnormal selling has been hard to find.
Updated July 2, 2020 