The Market has to Add Power, i.e. get more fuel….or it will Crash
Normally bull markets end with what I call a “hammerhead top”, a maneuver that you see at a air show, the plane goes straight up until the prop cannot pull any more air, the plane slides back down for a bit, and then rolls over and comes down.
There are times however, maybe such as we are seeing here, 6 years of zero interest rate fuel and still not arriving at the desired destination, where rationing of fuel to get to the destination, slows the plane down so much that it literally falls from the sky.
Intuitively, market players seem to be feeling that sensation and it may be behind the calls all during the month of May for an upside breakout, they need to get some altitude, but where are they going to get more fuel?