My apologies for the lack of a blog last night. I wasn't well and didn't get round to it.No harm done. The market continues on its slow, weary way upwards.
The close yesterday is bracketed by the closes on the 7/8 November, which marked the early November high.
The RSI.2 remains extremely overbought.
Slow Stochastic (5.5) also remains extremely overbought, and has been since early December.
A fall by the Slow Stochastic below 80 would trigger a short term sell signal.
Markets can stay "overbought" for extended periods of time. But this one is looking very long in the tooth.
That doesn't mean that a major retracement is in the offing (although it could be). But a few days of weakness would be healthy if this market is to maintain a bullish tone.
Otherwise, we may be looking at a climactic buying session which would surely end this bull rally for more than a few days.
At this stage, such a possibility does not look likely.
Remember, tonight in America is "triple witching" for Options. That often results in dramatic movements - usually to the upside.
Cheers
Red
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