We are seeing US indices take another leg higher today. Both majors are currently taking out new ATH levels. Given the relatively negative news flow over past weeks, with emerging markets bonanza, Turkish lira volatility, China trade war etc, the built up of the aggregate psychology creates frustration among many players.
Many bulls have probably given up, while bears at the same time have had plenty of negative news flow to become even more bearish. Should this market close higher by another percent or so, the squeeze could develop quickly. Such a squeeze will definitely confuse many fundamental players.
Below are charts of NASDAQ and S&P 500, impressive break outs.
Source: charts by Bloomberg