Monday Market Outlook: Three-Week Rally Shows Potential for Washout Amid Continued Bull-led Momentum

Choice quotes from our weekly discussion with Ben Lichtenstein, president of TradersAudio.com. "Most notable is the lack of energy we've been seeing up into these new highs. For the most part, that's what traders have been commenting on - a low-energy, slow-grind-higher kind of trade." "This is a very difficult environment for the locals to trade in. They tend to get that grind against them, and they really have no other choice but to take the other side of that paper." "I actually don't think earnings are where most of the focus is right now. I think it's very technical." "The energy would be to the downside if we started to break the 1300 level and see a bit of sell-side activity, but as long as we see these bonds continuing to come off, I don't think we are going to see that. Money is moving out of bonds and back into stocks right now." "The potential here is for this two-three week type rally to get washed out in one day. That would be 1250. That's not necessarily what I'm calling, but I think with this slow-grind, low-volume type trade to the upside, we could easily see it all taken out in a day or two." "I think any mention of [further easing from the Fed] would continue this upside activity. I actually think some of this upside activity we are seeing is in anticipation of that. Lack of mention of it - we could see some disappointing profit-taking type sell-side activity." Find us on Twitter @BenzingaRadio