Monday, February 14, 2011

2/14 2:00

Just completed the Weekly Technical Composite and it is digging into deep overbought territory.  The level corresponding to the 2007 bull market high was not as negative as I expected at the time due to the manner in which the bull market approached, with sharp corrections punctuating the rallies.  This time the rally from last March is a bear-market rally and the reading is more indicative of how bull markets end. with long rallies and shallow, brief corrections as the conviction becomes imbedded.
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3 comments:

  1. CJFebruary 14, 2011 at 11:23 AM

    Please identify exactly what are the blue and green lines in your chart.

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  2. SteveKotelesFebruary 14, 2011 at 11:40 AM

    CJ, green is the DJI, blue is the Weekly Technical Composite. At -10 it is at a level consistent with historical market tops.

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  3. CJFebruary 14, 2011 at 2:39 PM

    >Very< interesting, thanks. Also today, the S&P doubled from the low of March '09. Do you believe in coincidences?

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