Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
“Not so fast….”
We have had a flurry of selling here in the last hour but in 2013 that means its a flat day rather than up. Flat is the new down.
On a series note we remain very overbought on many measures but that has not stopped this market at all thus far this year. We did tag a psychological area (big round number) this morning, and have a bit of a reversal but we’ll see how the 4 PM number looks. Almost every day in 2013 we’ve seen a flurry of buyers show up in the last 2 hours of the day so if they are exhausted it might finally mark a change of pace in the short run. If not, we just remain in a very overbought state.
While that inverse head and shoulder target from the mid November reversal to the 1520s remains in place, it is not expected to be reached in a straight shot – hence the expectation that there would be some shake out to get rid of some complacency. Thus far the wrong expectation.
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