Where We Stand

As I outlined yesterday the market will be maximum overbought somewhere between the close of business today and the close of business on Monday. I would prefer if we rallied through Monday because sentiment is not lining up for a drop. I look at many factors and prefer if all the ducks are lining up.

Currently, the only factor I see pointing to the downside is the upcoming overbought reading. Sentiment does not seem exuberant to me but if we rallied through Monday it might get there. Yesterday, there was heavy put buying on what was a slightly negative day. I don't know why the recent rally is not making people bullish. Maybe its because Apple has not participated?

2 comments:

Eran said...

maybe because so many people are talking about "sell in may and go away"

Tsachy Mishal said...

good point