The local sector gained 2.5 per cent as Afterpay touched new highs of $142.30 before closing 5.2 per cent higher at $141.

WiseTech Global gained 4.8 per cent, while Megaport dropped 5.5 per cent to $12.12.

Industrials gained 1.6 per cent as Transurban improved by 4.4 per cent to $13.51 thanks to an analyst upgrade. While mining giant BHP gained 0.9 per cent to $46.30 after increasing its iron ore production estimates to as much as 255 million tonnes this financial year.

Senior client advisor at Novus Capital, Gary Glover, said he was keeping a close eye on trading volumes to gauge the next big swing in the market following the November and December rises.

“It seems strange, but sometimes markets need time for the smart money to get out,’’ Mr Glover said.

A sharp increase in volumes would be an indication the market was about to move, and he believes that would be downwards given stock prices have run pretty hard.

“I want to be lightening off as everyone else is getting greedy.”

He added markets would remain “sedate” until the US reporting season finishes with the change in administration unlikely to have much impact on markets.

“I think reporting season will be more interesting because it might be confession season. Price to earnings ratios in any sort of metric (are) historically the greatest valuations ever.’’

Meanwhile Bell Direct market analyst Jessica Amir noted lithium miners were rallying.

The lithium sector was emerging from a two-year bear market and would soon be in bull market territory thanks to interest from electric vehicle makers who use the mineral in batteries.

“They have been some of the best performers in the ASX this (past) year,” Ms Amir said.

Galaxy Resources gained 7.5 per cent to $3, the highest price since July 2018, Orocobre was up 10.5 per cent to $5.70, also a two-year high, and Pilbara Minerals closed at an all-time high of $1.25 on Wednesday.