This market has a lot of confidence behind it.
Look at a couple of the charts above.
The Advance/Decline Thrust Chart is going straight up. That sort of direct movement is usually seen only in down movements, not in up movements.
Similarly, the 5-Day Average of the Force Index has risen vertically - and is now above the Zero Line and above the 13-Day and 21-Day Moving Averages.
Those two charts provide a vote of confidence in this market.
Volume has been sound - without being outstanding.
Is the market over-sold?
The stocks from the 50-Leaders above the 10-Day Moving Average has just reached 50%. That's not oversold. Williams %R and RSI are a long way from being oversold.
Looking at the negatives. The 200-Day Moving Average lies overhead. That may provide resistance. Remember - resistance is just that - not a brick wall.
We can expect some hesitation here - some consolidation. Given the strength so far in this run-up, some consolidation can now be expected.
But - there is great confidence in this market from powerful forces. In the medium term, I think those forces will prevail.
In the short term, I think we'll have some hesitation.
We shall see. What I think is immaterial. Keep watching the market - and do your own research.
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