This does not mean one should go short the market or close out all the long positions. Today’s new high occurred after the FED’s announcement of its tapering, and lot of the short was caught running for cover. If this market rally is to be continued, the market needs to follow through with higher high along with other indices to participate in making new high, the advance/decline and the net new high-new low need to regain their strength. Otherwise, one should continue to be defensive and cautious.
