Are investors cautiously optimistic? Probably. A little bit greedy? Maybe. Yet I would be hard-pressed to describe the current psychology in terms of euphoria. The most apt descriptor is complacency.

Stocks continue to hold up like troopers even though bulls have lost some traction, perhaps due to a combination of the summer doldrums and overbought technical conditions that have them biding time until the next setup for a run at new highs.