ajtj99's Market Pulse

[Justa Werkenstiff]

Market: Re: "Market: At the close last night, fwiw, (extreme) overbought sells on most every average on the daily chart for the short term. There is a chance in this environment that overbought becomes more overbought before a turn."

NDX is on overbought sell again today (intraday)long with a few other averages. I said there was a chance that extreme becomes more extreme (strong uptrend) before a turn. I think that is playing out and expect more of the same absent a major sell-off this afternoon. A close below NDX 1646 will get me thinking. But the Sox suggests suggests this is not going to happen today.

I am neutral for the moment looking for a turn. The overall rally in the Ndx is on poor footing as the A/D line has shown a large divergence between it and price as compared to the rally into the mid December top. This should cause more of an immediate decline now but it has not. It looks as though stocks are awaiting earnings before any turn.