By Jeff Clark in Growth Stock Wire:

The loud banging sound you heard yesterday afternoon was me slamming my head against my office wall.

In 27 years of trading, I've rarely been so frustrated. You see, I started turning bearish on the market during the middle of last week. The early-September rally looked like too much, too soon. There were bearish divergences developing on all of the short-term charts of all of the indexes. And stocks looked poised for another vicious reversal.

Stocks have continued higher and the divergences have grown even more severe. We've seen this happen so many times this year – where extreme moves become even more exaggerated. That's just the type of market environment we're in right now.

At one point yesterday I was convinced, absolutely convinced, stocks had reached the point of upside exhaustion. The Volatility Index was up sharply. The Trading Index (TRIN) was solidly in "sell" territory. Financial stocks – usually a leading indicator for the market – were lagging. And the advance/decline line was unimpressive.

It was as good a sell-side setup as I've seen in months...

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