August 17, 2017

Will we see more short-term overbought readings over the next few days?

The major indices continued to move higher today ahead of the Apple earnings after the close and by the post market action in Apple (as I write this) we should see a continuation of the move tomorrow. If the market is able to continue the advance tomorrow we should see overbought conditions in many of the major benchmarks I follow, especially the tech-heavy NASDAQ 100 (QQQQ).

I am still on the sidelines at the moment as the market just hasn’t displayed any signs of extremes. My guess is that we might see another push into overbought which should make for another decent opportunity to fade the overbought readings. The upside gaps from 4/16 and 4/18 have yet to close and I still feel as though any meaningful move to the upside will not occur until the two aforementioned gaps have closed.

April 23, 2008

Major Benchmarks

  • Dow (DIA) – 64.0 (neutral)
  • S&P (SPY) – 62.1 (neutral)
  • Russell 2000 (IWM) – 48.8 (neutral)
  • Nasdaq 100 (QQQQ) – 67.8 (neutral)
  • Emerging Markets (EEM) – 72.0 (overbought)

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