The SPX daily chart shows the the market has been playing "peek-a-boo" with corrective
action for a couple of months only to break higher and cream the shorts. SPX Daily
Look first at the successful little series of tests against the 25 day m/a in over Apr. / May.
Now look at the succession of scrapes with the 10 day m/a since Jun., all resolved in favor
of the longs.
I have argued in recent weeks that the SPX was significantly overbought on an intermediate
term basis and appears toppy (scroll down). But the insouciance of the bull traders has been
fun to watch: "Hey if you think it's overbought, watch what we can do with it. we can make it
more overbought."
More and more seasoned and successful investors have been coming out to say that a market
correction is due if not well overdue. But the minor sell offs see the bulls quickly regroup and
tenaciously push it higher.
As of today, the trend off the Apr. low is still intact with no breakdown apparent.
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