Mike Santoli's market notes: Lethargic at highs, Bob Dylan indicator, big options speculation

A distillery is partnering with Dylan to distill whiskey at a 140-year-old Tennessee church and bottle it under the name Heaven's Door.
Chris Pizzello | AP

This is the daily notebook of Mike Santoli, CNBC's senior markets commentator, with ideas about trends, stocks and market statistics.

  • The market feels slack but not stressed, lethargic near the highs yet with favorable longer-term breadth, leadership and risk appetite trends intact. It's a tough moment to turn newly bullish – over-extended indexes, crowded bullish thesis, momentum flagging a bit – but a perfectly comfortable time to stay on the bullish side if already there.
  • The makings for some kind of pause/pullback remain in place – though all of it is visible to everyone (giddy sentiment, amateur-trader speculative froth, overbought indexes, heavy inflows of FOMO money). So how much of a surprise would a pullback be to most here? And with the consensus professing a desire to buy it, makes the game theory analysis of who needs what to happen when a bit muddled.

More In Pro Insight

CNBC ProMike Santoli’s market notes: Buying energy wanes, immaculate rotation, casino action
CNBC ProBeware these stocks that have poor track records during earnings season
CNBC ProMike Santoli’s market notes: Stocks taking a breather, Apple is up as the market rebalances