I am detecting super-exponential movement in the markets. This can lead to bad news as it means more than just an overbought situation is before us. The chart below depicts three times that the price curve bent upwards on a log scale chart. A straight line on a log scale chart depicts exponential growth, thus these are super exponential. So some cyclical bull markets end in a blow-off phase, the prior two did and the jury is out for today.

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The chart also depicts what the first year in a new cyclical bull market looks like (powerful). Some people believe that because we had a 20% correction in 2011 that that was a bear market and we began a new cycle in late 2011. I think the preponderance of evidence suggests that that was just a big correction in on ongoing and now 4 1/2 year cyclical bull market. This is old and the super-exponential phase we are witnessing may mean that we are approaching an endpoint.

The only work that I am aware of that attempts to define an endpoint in a super-exponentially growing market is Didier Sornette's Log Periodic Power Law technique. For what its worth here is an attempt at the analysis.
The critical time parameter (tc) that produces the best fit suggests that we are now arriving at a regime change (actually Monday is the critical date).

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I will say that October 31, 2007 had a day that is reminiscent of what Friday looked like. That was the end of a super-exponential growth phase at the end of a cyclical bull market.

I am uploading a new watch list in the stock selection area. Because of the overbought situation most stocks I would want to own are extended beyond safe buy points. This makes the list very short. I am listing here all of the stocks that I do want to own if a buying region develops. I own some of these already. These stocks have good earnings and sales, most show accelerating earnings, they show institutional buying and have been behaving well. They are just mostly not at a safe region to make a new purchase. We need some kind of a pull back. This will be tricky because the implications of the top of this post is that we just may get a pullback that doesn't stop for a while.

ACT
BLOX
CBI
CLR
CRZO
FB
INVN
KORS
NQ
NSM
NUS
OAS
OCIP
OII
PCLN
PRAA
PRLB
QIHU
SFUN
TSLA
VEEV
VRX
YNDX