About the only reasons the market went up yesterday were its oversold condition, POT getting a bid from BHP (which was the only reason for the increase in volume in the market), and the FED pumping liquidity in from its POMO actions. Otherwise there was nothing to get excited about as thin stocks and beaten down stocks and groups moved higher.
Volume across the majority of stocks that could be considered leaders was extremely low. Volume in the market rose only because of the enormous volume in the fertilizer stocks and related stocks. We can argue it's August, but when they want to buy they buy. It would have been more impressive if volume would have risen minus the extraordinary volume in the Fertilizer and related stocks.
Maintain cash levels and look for shorts. If you don't short, go on vacation for the rest of the month and maybe beyond. Too soon to look out that far, but it doesn't look good.