See Saw

The market continues to  see saw, rising one day and falling the next. As I have been outlining there is a pull from a weakening economy, while there is a push from an already de-risked investment community. Unlike during the last downturn there are not many over leveraged market particicpants so even if the markets do head lower it will probably be more of a slow grind.

Looking out a few weeks this see saw action favors the bulls as long as it continues. The market is currently overbought and a continuation of this would allow the bulls to work off the overbought condition by going sideways. The bears need to get to work soon if they are going to make something of this overbought reading.

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