Overbought!

Are the markets climbing the wall of worry or building a skyscraper out of a house of cards?  The action on Tuesday and Wednesday leaves little to the imagination as we witness the indexes rocket into the stratosphere.  I have been discussing the attributes of “B” waves in that often the moves are emotional and lack any fundamental “ground” underneath to provide the support needed to sustain the weight being put on.  This continues to be the case.  It is times such as this that a “turn” often occurs as if without warning – “out of the blue”.  The S&P 500 future has been on one-way ride since reversing course intraday on September 6th.  The index has climbed $50 in four days, which is an impressive move.  In the process the market has become extremely overbought as registered by the stochastic oscillator pushing to it’s maximum level of +100.  There are times when the “weight” of the markets brings them back to the “mean”.  Such a time seems to be a

http://www.indicatorwarehouse.com/96521/overbought/