(Click the above chart to see a bigger version.)
Here's another view of just how overbought the market is at the moment.
The XAO is very close to +3 standard deviations away from the 50 Day Moving Average.
That is an extraordinary figure. Since the second phase of the bull market began in July 09, the market hasn't been near a +3 Standard Deviation move above the 50-Day Moving Average. Mean reversion will prevail. This market is set for a big retrace.
Cheers
Red
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