Traders are celebrating the higher highs with internal market metrics such as the NYHL proclaiming that higher highs are guaranteed for stocks going forward. It is true that each red circle high that occurred did bring on new market highs, eventually, however, that is a flimsy idea to hang your hat on. The red circles show key market tops and green circles market bottoms. Note how the uber negativity during a selloff drives the NYHL lower (far more lows occur than highs as stocks are thrown overboard). This excessive negativity creates the market bottoms.
Conversely, excessive and euphoric highs (red circles) create tops as the joy becomes too out of hand; like now. The doorman and taxi cab driver just invested their entire life savings in stocks afraid that they are missing the train leaving the station. What do you think will happen? Note also that as the NYHL has now made a higher high, the NYA has not (needs to reach 10600; now at 10550). It is near but price is lagging which is a divergence hinting that the ride higher in stocks may be running out of gas. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.