Sentiment

The contrarian and proper view of market sentiment suggests that the next tradable market move will be down, at least for the short term.

Rydex asset allocations can move to a more extreme level, but not by much.

AAII data indicates a lack of strong opinions, both bullish and bearish.

McLellan Oscillators show the peeling off of breadth over the last month or more. Another divergent high is certainly possible though.

In addition to the above the equity put-call ratio has been low (chart not shown).

On the bullish side the price action of the Russell and Nasdaq indicies are not diverging from the SP500 just yet. 

Perhaps a significant drop is preceded buy a sharp upward spike!...