An Overbought Pause
Musing on the Markets

Blog Subscription Form

  • Email Notifications

Beyond The Sound Bite

Consume the FeedMy Beyond The Sound Bite audio interviews are now available via Podcast on  Consume the feed here.

Have You Seen This?

Have You Seen This?

As delightful as the rally has been, a key super short-term technical indicator, Slow Stochastics, is registering an overbought reading (above 80) and a cause for a pause.

As the accompanying chart* shows, while the near-term indicators, Momentum and MACD, are in fine shape (especially MACD) and supportive of further market strength, Slow Stochastics suggest that the market may have reached a near-term peak.

As was the case with the recent oversold levels and near unanimous non-confirmation readings, overbought readings are abundant (most indicators registering the same readings) and give further evidence of a peaking out in the rally.

*To learn about "Sectors and Styles Strategy Report" newsletter and other subscriber benefits, click here. 



Posted 11-04-2008 8:05 AM by Vinny Catalano, CFA