Back to Overbought

After telling us nearly two weeks ago that the markets had suddenly become quite oversold, the numbers have swung back toward the same overbought conditions we were seeing prior to that slide. So we find ourselves again bumping up against the recent highs and the long-term highs. And again the numbers are warning us not to become overly enthusiastic.

Looking at the Arms Index moving averages, the second chart below, we see that the five-day is quite overbought and the 10-day is moving in that direction. With normal offsets in the next two sessions, the 10-day is likely to become quite overbought also....290 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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