The Dow closed above 29,000 to all-time highs for the first time and looks headed to 30,000 and more.

The strength in the broader markets has been amazing, with people searching for reasons for the “melt up.”

The markets are still in uptrends on the daily, weekly, and monthly charts but are short-term overbought with bearish sentiment and deteriorating breadth.  The put call ratio is showing too much euphoria, which is a big warning sign to us.

From a fundamental view, however, stocks are expensive from several measures.  The S&P 500 is trading for almost 19 times projected 2020 earnings, one of the highest readings in more than 40 years.


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