US Stocks Are The Most Overbought In 12 Years

With GAAP valuations topping 22x, macro data weakening everywhere, and US equities at their most overbought since 2004, what could possibly go wrong?

The McClellan Oscillator has reached over 90 which represents a highly overbought level. However, more amazingly, if you look at it through the lens of a monthly chart there is no evidence of any correction ever having taken place in 2016. No red whatsoever



And further, an over 10% rally off the lows and still Nasdaq has not managed to have a single day with more new highs than new lows in 2016...


We are sure this is nothing to worry about, just buy stocks.