You have both made very valid points regarding the present market sentiment & it's possible future from here.
From a technical perspective I note that the XJO today closed right on an established resistence at 4579 however to arrive at this point it has crossed through the 50dma which is a signal that this could in fact become a correction (>10%) rather than a mere pullback(<10%).
Should it turn out to be more than a mere pullback which at this point in time is only slightly greater than the last three occasions since the more substantial pullback in July, then it's looking more like a much needed correction particularly given the pace at which we've arrived at this point.
If the latter is the case it could mean that the value of the XJO is potentially going to be in search of the 200dma!
