(Editors Note: We got this Friday from Larry. Enjoy)
The stock market, as measured by the Standard & Poor’s 500 Index
($SPX) continues to march upward at a dizzying pace. The market
is overbought, and if $SPX violates support at 2060, we could finally see a correction.
Both of the breadth indicators remain on buy signals,
and they are modestly in overbought territory.
Volatility indices have generally been declining, and — while VIX can certainly be considered overbought as it hovers near 12 — stocks can continue to advance while these volatility measures meander at low levels.
In summary, the intermediate trend is bullish, but the overbought
condition is getting to be problematic. LM