The intermediate overbought condition of the market I
have been discussing in recent weeks has eased slightly
but remains very much in force. Since I give this
kind of overbought six to eight weeks to work off, it
looks like the caution light could be on until year's end,
barring a sharp sell-off that is tightly time-compressed.
Now, my primary indicators are proprietary internal
supply / demand measures, but the weekly chart of the SP500
shows the overbought in more conventional technical terms.
For a view of this chart, which features RSI and MACD
indicators, click here.
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