Stock Market Continues Rise but That Won't Last This Week

NEW YORK (TheStreet) -- The stock market continued its move higher on Monday as the DJIA closed up 75.65 points at 17076.87 and the S&P 500 was higher by 9.52 to close at 1997.92. This was after briefly going over the 2000 level. The Nasdaq was higher by 18.80 to finish at 4557.35 and the Russell 2000 closed up 4.88 at 1165.22.

The Russell 2000 is now up fractionally for the year to date after being negative for most of 2014.

Once again this stock market is uninspiring. The S&P 500 Trust Series ETF (SPY) volume was a paltry 63.7 million shares traded on Monday. I am now just waiting for the hedge fund machines to finish their buying spree.

Read More: 7 Stocks Warren Buffett Is Selling in 2014

The stock market will turn down this week.

If the stock indexes open to the upside on Tuesday, the DJIA, Nasdaq and S&P 500 will all have an extremely overbought algorithm number. This does not happen very often. We are talking DJIA - 99, Nasdaq - 99.88, which is approaching extraordinarily overbought, and S&P 500 - 99.04, according to my algo numbers.

If you are a trader, the risk is extraordinarily high in buying this market up here. You would be better served sitting on the sidelines and waiting for lower prices which is inevitable.

There are numerous negative divergences in this stock market from the weekly new high/new low list to the lack of power and force behind this move higher.

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