Totally confused!

I must admit that I'm totally confused about what the market is telling us.

For quite a few days last week, we see VIX moved up together with the market, two of which are usually inversely related. Once or twice over a period of time of the same direction for both can happen from time to time, but frequently within a week or two? This is very odd!

Then with the market making all time highs, several important momentum indicators show extreme oversold conditions for the market. That's a totally bizarre phenomenon. I don't think I have ever seen this before in my over 20 years in the market!!  

I simply don't know what to take from the market at the moment but I suspect there is a big risk brewing right now. Clearly nearly everyone is happily chasing for the year end rally with all the talking heads pumping the gas to fuel the euphoria, I won't be surprised to see a sudden sharp rug-pulling event in the next week or two. 

Don't get me wrong. I'm still expecting for a Santa Claus Rally towards the year end but I just don't believe we will see a straight line up from here. It will be much healthier and sustainable if we first get a mini crash, say a 3-5% or so decline from here before mounting a strong rally.