Time for Stocks to Cool Off
The market put in a strong finish last week as "Uncle Ben" dropped more liquidity into the system and juiced equity prices once again. The news was bullish, and traders felt empowered to buy equities, but the strong push higher at the end of the week has moved our indicators toward an overbought condition. The price structure remains bullish, as well, and the internal structure of the market has made a significant improvement and confirmed that condition.
The only problem is that the surge in prices has created bullish excesses that need to be digested. A pullback and consolidation following this sort of surge in prices would be normal and healthy. We suspect the major indices will halt their advance and form a consolidation at these levels....309 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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