The S&P 500 ($INX) remains bullish, with Trend Index holding above zero for over a year indicating tremendous buying pressure.
Narrow breadth is our main concern, with the Russell 2000 small caps ETF (IWM) diverging from the S&P 500 ($INX).
The market is growing risk-averse as the Fed starts to taper. But financial markets are still awash with cash.
Buying is likely to be concentrated in the heavyweights.
Small caps could possibly accelerate into a down-trend but reversal of large cap indices is unlikely with so much liquidity.