The McClellan Oscillator has reached an extreme level and the market is vulnerable for a pullback after this rally on light volume. However, the first day of September is typically a strong day, so any pullback may begin Friday or next week. If the market manages to consolidate in a sideways pattern, then expect much higher prices.
When the M.O. reaches this extreme, it usually means that at least a retest of the high will be seen after a pullback if not higher prices. It may be prudent to lighten up on short term longs tomorrow or Friday, but it may be too early to think about shorting.