Monthly on $SPX chart now at 75 and so is overbought. Have not seen readings this high since 2007. pushed higher in 2007 and will probably push higher before end of month. In 2007 we didn't have the luxury of constant POMO so it's hard to know if this is a valid comparison especially out the front windshield. Will have to wait until it all appears in the rear view mirror.
Daily on $SPX chart now at 68 so is not overbought. rose nearly 5pts between Thursday's open and Friday's close so could easily push above 70 by this coming Tuesday. Should this happen, then have to be on the look out for some kind of consolidation afterward.
60min at 80 and so is overbought. Don't usually see readings this high without some kind of consolidation.
All of the above hints that the market is in a state of overboughtness and is likely to get even more so and history suggests that the market will at some time in the next week or two have a cooling off period in order to digest recent gains. That might mean a one week pause in the rally or more than that but since the lows of 2009 every pull back has been a buying opportunity and that isn't likely to change in the next few months.
Lot of talk about bubbles out there with IPO's going off left and right. About all we need now is for the announcement that someone is going to build a new building taller than any other in the world.
Sent to you from... the bubble latitudes.
GL in the week ahead.