August 17, 2017

Tuesday Top?

Three out of the four major indices pushed slightly higher again today. Over the last four trading days the S&P (SPX) has moved roughly forty points and all three averages have been higher approximately 3.5% on average since the beginning of April. However, seasonal conditions call for a slowdown in performance as April tends to display weakness following the tax deadline. Given the current “overbought” to “very overbought” nature of the market I would expect to see some of this weakness very soon (1-3 days). If the market is able to hold up until Friday I would expect to see another signal in the ETF Extremes.

As I write this the futures are down roughly three points so the move back to 1460 area could occur tomorrow. There are still two unclosed gaps in the S&P and I would expect to see the most recent close within the next week or so.

Overbought/Oversold levels for April 17, 2007

  • SPY –  88.9 (very overbought)
  • DIA – 86.6 (very overbought)
  • IWM – 78.7 (overbought)
  • QQQQ – 77.1 (overbought)
  • GLD – 70.0 (overbought)
  • OIH – 65.7 (neutral)

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