The trend of price in the Stock Indices is up. Anyone looking at a simple chart can see that. However, if you look at what is happening internally within the Indices, you see a completely different picture. In fact, I cannot remember seeing the internals of the Market deteriorating to such a degree as price continues higher. This is certainly a warning flag.
While there is a small possibility the internals will correct to support price, unless or until that happens, there is great risk to a downside move.
The only reason the uptrend is still intact is due to some of the more heavily weighted stocks, as you will see in the Briefing. Market breadth is and has been negative. New highs are collapsing. New lows are moving higher. Volume is extremely low. Until this is corrected, there remains the risk of a sudden selloff.
We have to respect the trend but, at this point, with much caution.
DAILY BRIEFING 200822 from Joe Mertes on Vimeo.