As we pointed out last week, global risk assets generally look overbought and are due a short term correction. It is impossible to pick bottoms and tops, but from the point of view of tactical trading, the current environment merits caution for long biased traders.
Among US sectors, all sectors save US telecoms are trading near the upper band of their Bollinger Bands which suggest that the market is ready to exhibit weakness. The same is the case if we look at global equity markets as a whole.
Advance/Decline ratios do not look particularly stretched across US sectors and global markets, but looking at the number of stocks trading above their 50dma a short term correction or a halt in the recent rally is likely.