Live Update

Tuesday, November 4, 2008

11/04/2008 Market Recap: Market Overbought

Not much to say today, let's see how the market reacts to the election result.  Technically speaking the market is extremely overbought and due for a pullback over the short term.

0.0.2 SPY Short-term Trading Signals.  Look at the overbought indicator and see how similar those blue circles are.


1.0.4 S&P 500 SPDRs (SPY 15 min), 1.2.4 Diamonds (DIA 15 min), Bearish Rising Wedge, MACD and RSI show negative divergence.  It should pull back.


2.0.0 Volatility Index (Daily).  VIX is oversold.  If it bounces back, the market should pull back also.


7.0.6 SPX and VIX.  SPX has not formed a higher high yet but VIX has a lower low now, which is a negative divergence.  This chart is for your information only. 


3.2.0 CurrencyShares Japanese Yen Trust (FXY Daily).  Yen is oversold.  Its potential rebound is bearish to the stock market.



  1. I think you are correct we are looking overbought and should see some type of pull back here as long as we dont take out the oct 27 lows I think we may have a base for a decent rally. If those crack though I dont think we will get a good bottom until late december.

    as always you work is great

    thanks again

  2. I really enjoy your commentary, thanks.



The information contained on this website and from any communication related to the author’s blog and chartbook is for information purposes only. The chart analysis and the market recap do not hold out as providing any financial, legal, investment, or other advice. In addition, no suggestion or advice is offered regarding the nature, profitability, suitability, sustainability of any particular trading practice or investment strategy. The materials on this website do not constitute offer or advice and you should not rely on the information here to make or refrain from making any decision or take or refrain from taking any action. It is up to the visitors to make their own decisions, or to consult with a registered professional financial advisor.

This websites provides third-party websites for your convenience but the author does not endorse, approve, or certify the information on other websites, nor does the author take responsibility for a part or all materials on the third-party websites which are not maintained by the author.