Looking at this chart it would be easy to say that the market will probably reverse.

All the balls are lined up. The market was down today, with the 50-Day SMA hovering overhead.

The RSI has reversed at the mid-line. And the Slow Stochastic has turned down below its signal line (but not yet below 80).

So, is there a fly in the ointment?

Maybe. A/D ratio today was 1.1:1 and AdvancingVolume/DecliningVolume Ratio today was 1.5:1.

Are the punters overoptimistic? Betting against a market downturn? In the past breadth has been a better gauge of near term direction than the overall market chart.

So, I think we have to side with the punters and believe that this rally has more legs yet.

Cheers

Red