Wednesday, September 15, 2010

Overbought stocks??

In yesterday's daily review, I had stated that there are a couple of ways a market can come down from overbought levels - a sharp pullback or a period of consolidation. Below are the charts of NYSE and Nasdaq McClellan Oscillators respectively.After a couple of days of the latter, we find that the market is indeed quietly coming down from overbought levels. A couple of more days like these and the bulls will be looking good to take on 1030 on the S&P. 























I will be back later reviewing the action today and looking ahead at tomorrow.

Take care and good luck!


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