The Markets

A couple of quick comments. The market continues to head higher and shows at every turn it wants to head higher. Be careful though right now. I have not been following technicals in awhile until yesterday and wow!! Before the market open yesterday we were extremely overbought. 83% of stocks were above there 40 day moving average. Last April/May we topped out around 76% and in August we topped out 62%. We are in extreme territory. Now we were extreme (broke records) oversold in October moving into November so for every action there is a reaction and just the way the price action works for moving averages we could be this extreme for awhile and move more extreme. Just saying be careful from a timing perspective chasing a stock you like. If your a bull at this point you would love to see some choppy action moving down around 920 to 900 working off the overbought nature before moving higher. I think we are still headed higher in the short term but we are as definitely overbought as I have seen in the last year.