The market is still standing after taking a triple whammy to the chin yesterday after the bell. American Express, Amazon and Microsoft all reported weak earnings and saw their stocks decline sharply after the bell yesterday, however, the S&P 500 is trading down by just 0.27% as I write. Meanwhile American Express has gone positive while Amazon and Microsoft both trade off by over 8%. This is remarkably positive market action and a sure sign that investors are eager to snatch up shares at higher prices.
This has all the telltale signs of an impending blow-off top. Complacency is very high, sentiment is getting very bullish, the technicals are very overbought and most importantly, there is very little underlying fundamental strength that has justified this move. S&P 1,000 certainly looks like the next stop. Stay tuned.