Overbought Condition might put a Cap on the Upside

S&P climbed above the lower boundary of the red band after falling below that level last week. While momentum has been strengthened, the market is once again overbought. This might put a cap on the upside. Additionally, the lagging Money Flow measure suggested that traders are positioned for some significant headwinds in the days ahead so enjoy the bounce while it lasts

S&P in Overbought Correction but Downside Could be Limited

pullback unfold Thursday, leading to a break of support at the lower boundary of the red band, near 2650, in the S&P. Market internal has weakened but support is strong in the 2625-2600 area. This could help minimize downside follow-through and widespread breakdowns

S&P Waning Upside Momentum Forewarn Lower Stocks Price

daily chart of the S&P has shown significant signs that momentum is waning. On balance, we remain near term neutral/negative for S&P as we believe market vulnerable to some downside retracement over the short-to-intermediate term

S&P Upside to be limited by Overbought Conditions

the fact that the S&P is overbought as it approached key price level that had been successful in repelling price action in the past suggested that upside gains could be limited. As for strategy, traders should consider buying into market dips rather than chasing breakouts

S&P’s Internal Does Not Favor a Sustain Breakout

Friday’s upside reversal had helped putting the bulls back into the driver side of the market. However, market internal does not favor a sustain breakout. Our near-term technical bias favors some backings and fillings as overbought conditions are absorbed

S&P in a Midst of Overbought Consolidation Phase

several key technical indicators suggest that S&P is in a midst of an overbought consolidation phase. The fact that the index managed to hold on to most of recent gain in the face of such extreme overbought condition, indicating an internal strength. However, give the damages done over the past days, upside reward could be limited

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