U.S. equities are marching up but there are many signs this market looks not so good. It does not mean this is a good opportunity to short it but it means it is a good opportunity to sell equities. Simply put, the risk is, in my opinion, too high. A way too high. Just two charts:
I have explained the meaning of SKEW Index in this article. Looking at the chart above we can spot there is a very high risk of a rapid correction.
Well, another thing. Look at the chart below:
Despite Nasdaq100 and S&P500 marching up, we see that less stocks record new highs
But we have seen it before. The most surprising thing is that we see that more and more stocks record new lows while indices are standing at their long-term highs.
The market is driven by less new high issues and more new low issues. It does not look good.