In a career spanning almost 40 years, I have never observed a more worrisome chart pattern as the one below. If you are at all scientifically minded, this pattern of higher highs and lower lows looks like an out of control system that is about to fall apart, something like a runaway train that is swaying hard back and forth just before it jumps its tracks and crashes.
Adding to my worry is the behavior of the Relative Strength Index, which keeps diverging negatively, ie it keeps going lower despite new highs on the S&P itself.
I hope that things cool down, but I’m not optimistic. After all, the Grinch did steal Christmas !