NEW YORK ( TheStreet) -- For the eighth consecutive trading day, the S&P 500 Trust Series ETF  (SPY - Get Report) traded less than 100 million shares on Thursday. Where has all the volume gone?

It appears the hedge fund-programmed machines insist the Nasdaq continue to move higher and set an all-time closing high record at any cost. That high was set on March 30, 2000, when the Nasdaq hit a high of 5132.

In the meantime, the Russell 2000, the SPY, and the Nasdaq are all trading in extreme overbought territory, according to my internal algorithm process. We have not seen this type of extreme overbought condition since the first week of November 2014.

The DJIA closed lower in trading on Thursday, down 44.08 at 17,985.77 while the S&P 500 was lower by 2.23 points to close at 2,097.45. The Nasdaq was the big winner, gaining 18.34 points to close at 4,924.70 while the Russell 2000 was fractionally lower to close at 1,227.91.

So where do the markets go from here? These seem like the dog days of summer. We have extreme overbought conditions in a stock market that has gone higher on air.

These are not the times for traders and investors to be bullish, even though the price action says otherwise.

The economic numbers that have been coming out on a daily basis have been totally ignored as the markets continue higher.

The latest, the Philadelphia Fed Survey, came in at a dismal 5.2 reading. The data are beginning to be affected by loss of pricing power as well as lax demand due to rising imports. On Wednesday, the Federal Reserve all but announced it will not raise interest rates in 2015 unless it sees an increase in employment and wages. That's not going to happen.

So, it appears that we are in the last leg of this Fed-induced, asset bubble-created stock market. It may take another 12 months for the party to play out but there is no question this will all end very badly.

Traders and investors need to plan accordingly. The time to be a perma-bull on this stock market has long passed. Stay cautious and trade with a process that is both accurate and repeatable.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.