Recapping the US market action from Thursday, stocks were
able to rally for a 4th straight day and posted healthy gains on the
session. The rally now puts the Country
Fund Universe in overbought territory and showing an average RSI(2) reading of
77.46. More importantly, all of the
major US Index ETFs are showing extreme overbought readings with all of the
major US funds showing RSI(2) readings above 90. With 4 consecutive days of higher prices and
many ETFs in overbought territory, a pullback would be likely over the next few
The above is from Larry Connors’ Daily Battle Plan.
To learn more about the Daily Battle Plan – including access to Larry’s daily ETF trading signals, click here for more information.
And for more on ETF trading, be sure to visit us here to check out the book that Stocks, Futures and Options (SFO) Magazine called one of the best trading books of 2009: High Probability ETF Trading: 7 Professional Strategies to Improve Your ETF Trading.
Larry Connors is founder and CEO of TradingMarkets.com.