Yesterday morning, the S&P 500 cash index came within 0.86% of its Sept. 21, 2018, all-time high. The market has been on a wild tear for almost four straight months now, rocketing more than 24% off the low set on the first trading day after Christmas Eve.
So the way forward to fresh all-time highs is free and clear... right?
Well, not quite. The overwhelming strength of the market is precisely what will, for the time being, keep it from convincingly busting through the highs set seven months or so ago.
It's not that there's anything mechanically wrong with the market or the economy; both are relatively strong.
Instead, it's got everything to do with the psychology of the people, of the buyers and sellers who constitute the market.
Understanding what's happening is the key to being in the right place (ready to make money) at the right time (when the market rockets higher again).Here's what's happening...