In summary, the line of least resistance is still to the upside. Stocks are trying to break out, but there has not been a very convincing effort yet. If follow-through doesn't take place, the bears will take another shot at the market. Next week will be key for the markets. We're entering into sessional "cool-off" phase and have FOMC on Wednesday which could be a catalyst.

 

 A pullback wouldn’t surprise me with valuations stretched, growth rates peaking, the fed tightening liquidity, leverage near highs, a short squeeze underway and tax hikes on the horizon.