New High. Now What?

Due to travel, just a quick follow on to last week's commentary ("Happy Anniversary. Now What?"):

* New highs not confirmed by most major indices outside the US.
* Strength in near term indicators (Momentum and MACD) prevent a correction call right now.
* Short term overbought condition (along with profit taking) will likely produce a minor pullback in the next few days.

It will be after such a minor pullback and the perfunctory subsequent rally to higher highs at the start of and into earnings season which will likely produce deteriorating near term readings (Momentum and MACD). Should that occur AND the other global indices DO NOT make new confirmation highs, the stage will be set for the 2Q into 3Q major correction - or as I stated on "Taking Stock with Pimm Fox" back on February 2, "The Big Enchilada". (>10% in the US, >20% elsewhere).