The market is taking a pause today, with the Nasdaq off about 0.50% at the time of this writing. The VIX (CBOE Market Volatility Index), measuring fear in the options market, is up over 2% right now. There are a few ways to interpret that action in the VIX, but I believe it indicates a lack of complacency on the part of bulls. At market tops, you would expect to see more of an emphasis on greed, rather than scrambling for protection.

I also noted for 12631 and Weekly Strategy Session members that last week’s rally was met more with a sense of disbelief on the part of many traders as opposed to unbridled euphoria and indulgence on the long side. Of course, gauging sentiment can often be a highly subjective endeavor prone to confirmation bias and cherry-picking. Price is the ultimate indicator. However, sentiment currently seems more consistent with a market still climbing a wall of worry instead of one that has reached a significant top.