The markets continue their climb higher, seemingly without an sign of slowing. It is hard to see the economic drivers; everyday, we have mediocre economic data being reported and more evidence of a global economic slowdown. Don't get me wrong. I am not preaching recession, but this isn't a booming economic recovery either. SPX tacked on another six dollars to close at $2110. RUT closed up $5 at $1192. Volatility rose a touch with the VIX closing at 14.5%.

RUT finally has traded above its mid-September high. It has lagged behind SPX but seems to be working to catch up now.

Both RUT and SPX are running right along or even outside the upper edge of the Bollinger bands. So we are stretching the probabilities here. But the market can do what I don't consider rational for much longer than I think probable. But it sure seems as though we are overdue for a little bit of a pause.