Not Down Quite Enough Yet
We began last week with mixed indicators as the market neared its first intermediate-term overbought reading, which ended up materializing Tuesday. The action of the past week does not change that general picture.
Last Tuesday the 30-day moving average of the advance-decline line, an intermediate-term indicator, reached an overbought level. The volume indicator hit 55%. The market has since pulled back -- and, in cases like these, it's typical for the major indices to retreat, then rally again. On the chart below you, can see the pullback from the overbought reading last week....427 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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