Good Morning. The market is now overbought but will not be maximum overbought until Monday. Additionally, the market is up against resistance but the heavy resistance does not come in to play until the S&P 500 reaches the 800 level. I am not interested in trying to catch the last part of this rally as I believe it is better to leave too early than too late.
I spoke about the three phases of a bear market rally yesterday. I believe we are very close to the end of the first phase, which is the initial powerful rally. The second phase is the corrective phase. I will look to do some buying during the corrective phase because phase three is the culminating rally.
As an aside, it is interesting to note that almost everyone believes this is a bear market rally, including those who are participating in it. As long as the rally sucks people in I am not sure the distinction matters but it is interesting to note none the less.