Market Comments 5/11/10 Friday Morning

Above is an updated chart as at 10.00 a.m.

The RSI.2 has now hit 100. It can't go any higher. It hasn't been this high in the past six months.

That's an extreme overbought situation.

The last time the Indicator was close to this level was back in late June. The market then went into a steep decline.

The market doesn't have to follow that line again. But I do think we're in for something of a pull-back, which should occur in the next two-three days.

No.3 in the American Trifecta is coming up tonight. First was the American election. That worked out as expected and was priced into the market. The Second was the Fed Announcement. The day after the Fed statement is always the one to watch. That was last night our time - and it delivered a cracker for the markets. Zoom. So - what will tonight bring?

We shall see.

Cheers

Red