* Yet another up day pushed the S&P 500 futures to its 10th straight gain, only the second time since their inception (01/15/87 was the other).

* The relentless streak has pushed more of our measures to extremes, such as the Up Volume Ratio, which is at its most stretched level across all time frames in nearly 20 years.

* On a much shorter-term basis, our STEM.MR Model actually hit an odd oversold reading yesterday, which has led to (very) short-term downside in the past, then a recovery.

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What:  We will remain Neutral for now.

Why:  "Relentless" is the perfect term for this market, and it has triggered many historic streaks, as we've discussed over the past week.  For the most part, the precedents suggest a decent market going forward, nothing either too hot or too cold.  We find that again with an exceptionally overbought breadth reading from yesterday (see below).  There are (again...) very short-term warning signs (see below), but this market has been able to shake those off with only a few hours' selling pressure.  Notably, our Smart Money/Dumb Money Confidence Spread reached -25% yesterday.  Every time we've seen that since the March bottom, the S&P gave back any further gains within three weeks all 7 times.  I'll be more worried about an imminent decline if/when the Dumb Money reaches 70%, but again this at least suggests that those buying into this breakout to new highs be very guarded with stop losses, especially if trading it short-term...and especially especially if we see a gap up this morning that falls back below the previous high and doesn't recover quickly.

Bearish Inputs 

* Extremely overbought short-term indicators.

* Spike in call option trading.

* New extreme in AAII sentiment survey and Rydex Beta Chase Index.

Bullish Inputs

* Equities have continually rolled over bearish setups for the past couple of weeks.

What:  We will remain Neutral for now.

Why:  In early January, the Dumb Money Confidence hit 75%, which was another successful "protect your gains" warning sign.  By early February, we went over several studies suggesting we were very close to a good multi-week buy signal, but they just missed triggering.  In the process, there have been some more encouraging signs (such as no overwhelming number of signs that we have seen a major market peak, the advance/decline line at a new all-time high and extreme momentum in small-cap stocks).  The spread between the Smart Money and Dumb Money is back at -25%, which is a warning sign that further short-term gains will likely be erased at some point in the next few weeks, but we'll be more concerned about a more imminent - and more dangerous - peak if the Dumb Money again pushes up above 70%.

Bearish Inputs 

* Low (and rapidly falling) mutual fund cash levels.

Bullish Inputs 

* Uptrends across the board.

* New all-time high in the NYSE advance/decline line.

* Extreme momentum in small-cap shares.