Very well said snipertrader.

One thing which also works in favor of the bulls I think is that sentiment does not appear to be overly bullish still. The combination of neutral and bearish sentiment may provide enough “fuel” for more to convert to the bullish camp. There are numerous sentiment surveys but perhaps this one is most widely known / watched …

http://www.aaii.com/sentimentsurvey

And there still seems to exist a lot of general doubt and disbelief in this rally and many are just waiting and watching for the “plunge” ( as has been the case for the last two months ).

At some point a retrace will occur, but they’ve pushed this so high now on sector rotation to really attack some of the topping pattern ( H&S from last June ) on SPX and DJI and those ATH’s are in reach on them. The fact that DJT and RUT are lagging behind with NAS100 also lagging but not as much is a negative of course. But I figure in the game of perception, and as I’ve been pointing out previously, the major indexes for the US that get talked about broadly in the news are DJI and SPX.

These are times to remain observant on a daily basis even though the markets are trying to lull everyone into a sense of complacency or boredom. What the bulls have accomplished is impressive but things can turn quickly once they are ready and at some stage we will get a retrace … we just do not know from what levels yet.

Even if the bullish case continues to peck away at the bearish as you described the criteria for that, remaining observant on an incremental basis is the only way to fully gauge and assess the validity of that potential outcome. And if one actually converts to the net bullish camp, to actually shift portfolio positioning to such a net bullish posture must be engaged with on one’s own terms rather than the markets terms ( i.e. proper R/R entries ). As everyone knows, even in a bull market there are downturns which provide proper R/R entries.

Futures ramping nicely at 4 am. All time highs and more just around the corner.