Stocks are spending a bit too much time at the upper border of the rising wedge featured on the daily chart in my yesterday's analysis. But it's the two leading credit market ratios that are short-term concerning.

Both the high yield corporate bonds to short-term Treasuries (HYG:SHY) and investment grade corporate bonds to longer-dated Treasuries (LQD:IEI) declined yesterday, leaving stocks overextended in the short-term.

And the current very short-term price action in the S&P 500 (issues around the 3225 level) doesn't favor the bulls exactly.

That's why I think taking profits off the table (at market, which is 3205 currently) and staying on the sidelines is justified from the risk-reward perspective.

Trading position (short-term; our opinion): no positions are justified from the risk-reward perspective.

Thank you.

Monica Kingsley
Stock Trading Strategist
Sunshine Profits: Analysis. Care. Profits.