Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Quite an explosive rally yesterday at the 2 PM mark, in fact about 70% of yesterday’s gains came in a minute or so per Bespoke Investment; the power of algos. Obviously the Fed, by surprising just about everyone with “no taper at all”, lit another fire under the market but coming off a near vertical rally since late August it is still a bit surprising to see the relentless bid with no rest this month. Per at least one indicator this is the most overbought moment of 2013 – and it is not even close. The NYSE McClellan Oscillator rarely exceeds 60 and yesterday was approaching 90 at the close. This rare 80+ type of reading only happened twice in 2012 and four times in 2011.
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