The Pullback Window Is Open
In Friday's column I laid out the reasons for believing the market is due for a pullback. Of course, in having this view, my biggest concern is that I have too much company -- and that everyone must be overly prepared for such a pullback. As we know, the market will always do what it can to make the majority wrong.
As a reminder, the main reason for this view is that the market is due to become intermediate-term overbought Tuesday. The 30-day moving average of the advance-decline line last reached a maximum-oversold reading right around Christmas. There is now a higher high in this indicator, which is bullish, as higher highs must get retested at some point in time. In showing this chart, I don't mean so much to show you what transpires after such a peak reading, but more to highlight the higher high and to emphasize how long it's been since this indicator has pushed to such lofty levels....401 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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