Forgive my ignorance china but what will expire tomorrow? I've checked the option calendar and there doesn't seem to be anything, in the US at least.
I totally agree about the lack of volatility - the VIX and Vixen are all perilously close to a big leg up - it's surely only a matter of a few days at most. Investors Intelligence bullish sentiment is dangerously high as well, so I've bought some June FTSE covered warrant puts today as insurance. Mmmm 16x gearing!
Also check out the Dow Transports, they've broken the uptrend drawn from the March lows after considerable momentum divergences and savagely decreased volume at the recent high. They were the first to start the rally and will probalby be the first to end it.
I don't like the lower volume of money flow on new INDU highs either. The reverse pattern occurred on the March lows, which preceded the rally. This looks like an advance warning of a correction, especially given the bearish rising wedge.
And what on earth happened to bond prices yesterday, exploding to unprecedented highs? Either bond trades or equity traders are wrong, and I suspect it's the latter...