So many people are predicting a pullback, and perhaps that won't happen until they drop that premise and start talking about all the money on the sidelines waiting to come in. That would be a sign that the pullback is close. In addition, if we start seeing some frothiness in speculative stocks, that would be another sign.
If you read IBD, you've noticed their comments in The Big Picture about the number of distribution days the past couple of weeks. Also increasing.
Yes, a correction is coming. But selling and trying to front-run the pullback has been a loser so far. Lots of percentage points left on the table trying to do that. Might as well wait until we see more distribution, heavier volume selling and lighter volume buying. Maybe you won't get out at the top tick, but maybe you won't be frustrated fighting the trend, either.
Meanwhile, the economy is improving, and we're starting to see that reflected in energy prices.
Natural gas rose significantly and closed at $4.29 per contract, up 4.7%. The natural gas contracts have ended the session higher everyday so far this month; they are now up over 27% over that time period.
Crude oil finished near session highs. The June contracts netted a 2% gain to close at $57.85 per barrel. The June futures contracts are now up ~14% for the month.
As these prices work their way to the fueling stations and monthly energy bills, consumers will turn their focus back to energy. I believe the public will turn on President Obama's plans for "green energy" (windmills and solar panels), and begin to again cry "Drill! Drill! Drill!" and demand more nuclear power. I believe the Democratic party leaders will have to drive this. The Republicans try, but run into a powerful environmental lobby that funds the Democratic side of the aisle.