The overall market is in neutral territory today with the 2-period RSI of the Country Fund Universe at 55.87. The major U.S. indices are again the most overbought (the powers that be are absolutely determined to close prices higher for the year!), but the indices are not yet at extremely overbought levels.
Europe is going to remain the main focus and there are some key borrowing events between now and Christmas that will keep most of the world on edge. Overall though, any positive news is going to quickly lift prices.
With so many Country Fund ETFs hovering near or under their 200-day moving average, there are no attractive set-ups today with healthy edges. This tells us to stand aside for now and wait for the edges to appear (and they always do).
P.S. – In case you missed this article from this weekend’s Wall Street Journal, this is an incredible story well worth reading (it gets especially good in the middle and the impact this man has had on others – read the part about the boy with chemo). With the media always so focused on the negative, it’s great to see the WSJ publish something this strong on an individual.
The above is from Larry Connors’ Daily Battle Plan.
To learn more about the Daily Battle Plan, click here for more information.
Larry Connors is founder of TradingMarkets.com