From Peter L. Brandt:

Few trading situations are ever cut and dry, technically or fundamentally. Most markets are a mixed bag at any given time – there are some factors arguing in favor of a sustained advance, arguments in favor of a sustained decline, and arguments in favor of the continuation of a trading range. This is currently true for the U.S. stock indexes.

The dominant technical factors, as I see them, include:

Extremely light volume – bearish by the standards of conventional technical analysis.
Overbought readings using most acceptable overbought/oversold indicators. This fact, on the surface, argues at least for a major correction.
Strong uptrend on a daily basis – the market seems to shrug off all market sell offs. This is a constructive sign.
Most major stock indexes are range bound, except for the tech-heavy (and Apple laden) Nasdaq. This argues for a continuation of the range.
I have posited that the current advance in U.S. stock indexes is an analog with...

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