Stocks continued to drift higher in the light volume, holiday week. U.S. markets in particular show a bias toward the overbought.
Financials continued to be a focus for buyers, with both ^JPM^ and ^BAC^ up more than 2% and more than 3% respectively, and continuing to follow-through to the upside.
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Among the smaller banks making gains on Wednesday were ^RF^, up more than 7% and increasingly overbought below the 200-day moving average.
Bounding higher by more than 5% ahead of trading on Thursday were shares of ^WAG^ (below).
WAG had pulled back for three days in a row, becoming increasingly oversold, before Wednesday’s big bounce.
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Soaring into overbought territory above the 200-day moving average were shares of ^CCL^, up more than 3% on Wednesday and closing higher for a third consecutive trading day.
Shares of ^NKE^ (below) pulled back by more than 5% on Wednesday.
The stock had been increasingly overbought above the 200-day moving average going into Wednesday’s retreat, closing higher for four consecutive trading days.
Rallying into overbought territory below the 200-day moving average after a gain of more than 4% on Wednesday were shares of ^SVU^.
Clothing retailers ^JCP^ and ^COH^ (below) pulled back by more than 2% and more than 3% respectively ahead of trading on Thursday.
COH’s retreat puts the stock at its most oversold levels since the beginning of the month.
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David Penn is Editor in Chief of TradingMarkets.com