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!