Stocks, as represented by the Dow Jones Industrial Average, continues to flirt with new all-time highs. The bulls are watching, wide-eyed, as the index threatens to clear massive technical resistance that goes all the way back to August.
Fresh stimulus measures from the European Central Bank, the “untaper” from the Federal Reserve, and easing of Chinese inter-bank lending conditions, and some better-than-expected economic data has all contributed.
And yet, beneath the surface, there are signs of trouble as bullish sentiment reaches a rare extreme. Here are three reasons to be cautious.