Sellers Arrive as Markets Reach Overbought Levels
As I mentioned yesterday, the market was giving signs that it was heading higher when it started ignoring negative news last week and pouncing on any good news. That remains the case and it’s now taken the overall indices to slightly overbought conditions.
There are a number of stocks and ETFs which are hovering around the 200-day ma (and very reflective of the basically unchanged index averages since February). In the perfect world, the market will rally a few more days, move comfortably above the 200-day and then pullback triggering long signals in the ETFs. Any good news from Europe will bring this closer to fruition.
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