STRAIGHT UP

Markets continue on their vertical flight higher without pull backs or a down day. The overbought reading continue to abound with 2 day RSI readings of 94 on the DJIA and IWM, 91 on the SPX, and 97 on the NDX.

The VXO has dribbled down to 10.26 and is about 7% below its 10 day SMA. Of course the VXO dribbled down to these levels back in the middle of August and has stayed low ever since so taking the low VXO readings as a sell signal has not been a great strategy. No doubt, one day the VXO/VIX tandem will rip higher and there may be a great race to the exits which could cause a market melt down. That, however, is a story for another day, as for now the bulls continue to run without a worry to be found.