NEW YORK (TheStreet) -- The beat goes on. The markets all finished higher once again Monday as the S&P 500 sets another all-time high.
The S&P finished up 1.83 points at 1951.27 while the DJIA added 18.82 to close at 16943.10. The Nasdaq closed up 14.84 at 4336.24 while the Russell 2000 was higher by 10.67 to close at 1175.88.
The Russell 2000 index has now joined the other three major indexes in turning "Trend Bullish." It was the last holdout according to my three-month-or-longer time frame. With that being said, the Russell 2000 index is now up a whopping .007% year to date. The Nasdaq is now up 3.8% year to date while the DJIA is up 2.2% year to date. The S&P 500 is the big winner up 5.5% year to date.
So the question now is, where do we go from here? All that I can say is that this market is now extremely overbought. The DJIA, Nasdaq, and S&P are all extremely overbought according to my algorithm process and the Russell 2000 in overbought.
If we have a green, up open on Tuesday, the S&P will be extraordinarily overbought. That has not happened since Jan. 25, 2013, according to my internal numbers.
Whether we attribute this market move to the short hedge funds that are still covering their short S&P positions of the last two years or some other phenomena, this is no time to be chasing and buying at these levels.
In addition, the CBOE Market Volatility Index (VIX.X) officially crashed last week, down 5.7% to -21.6% year to date. That is something to stand up and notice. If you want to really blow up as a trader in this business or money manager, get your clients to lever up long the U.S. stock market at a 10 handle in the VIX.