The market has been making new all time high as market participants wait for the long overdue correction or pullback. So far, every little dips were met with buyers. The market does not appear to be looking for a catalyst to move higher; instead, it is waiting for a catalyst to selloff. The breadth of the market has not deteriorated even though the market is extended. Until those breadth indicators start showing signs of shifting from strength to weakness, the market will continue to grind higher.
During this weekend, a development in the Euro zone is being play out and that could be the catalyst or the excuse the market has been waiting for to start the long awaited correction. No one will know how the market will open next week, but as a trader, one can only trade based on price actions and not on believes. Here is a video highlighting the price actions of the market indices and some stocks that show potential trade possibilities going forward.
Continue to exercise caution and trade defensively. Wait for the setup and the trigger. Do not attempt to outguess the market!
Click here to view the video if you do not see a video player on your screen.
Correction: ORCL is attempt to make a new multi-year high, not a new all time high.