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Joined: 28 Dec 2005 Posts: 11981
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Posted: Sun May 06, 2007 10:19 am Post subject: Short-Term Overbought Market |
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Currently, SPX is slightly more than two standard errors from the mean, similar to late Feb, when it pulled-back roughly 80 points. However, it's uncertain how much SPX will pullback, e.g. to the 200-day MA, uptrend line (gray line), 50-day MA, only slightly, while staying near current levels, or perhaps rising to the all-time high (at 1,553 intraday or 1,527 close), given the CBOE Put/Call remains very market bullish. Also, the MACD (circle) created a "bullish kiss." However, volume is lower and seasonality is weaker (i.e. "sell in May" and after earnings season).
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