The broad market remains in an uptrend. Recent
momentum loss and today's sell-off have erased the
case for a short term overbought condition. However,
viewed in the intermediate term (3-6 months), the
market, although still in a clear uptrend, is both
extended and overbought, even when operating within
the confines of the strong upward trajectory underway
since mid-2006. The intermediate term work does not
presage an imminent correction as it stands, but it
does suggest a little caution is in order. I have
linked to the broad Value Line Arithmetic index ($VLE)
below.I like this one because it includes the top
mid and small caps along with the majors, but is not
capitalization weighted. The $VLE.
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