What’s behind the recent stock market rally? Just take the look at the charts below as they speak for themselves. In short, you can summarize April -June rally with 3 simple points.
- Massive short squeeze/covering on low volume.
- No fear, huge amount of speculation/greed, overvaluation and no bears left.
- Divergences and breadth. Even though the indices are up, only 17% of the Russell 3000 are up since March 4th. The rest are down.
In other words, you are witnessing a blow off top.
