"Not so fast…."
We have had a flurry of selling here in the last hour but in 2013 that means its a flat day rather than up. Flat is the new down.
On a serious note we remain very overbought on many measures but that has not stopped this market at all thus far this year. We did tag a psychological area (big round number) this morning, and have a bit of a reversal but we'll see how the 4 PM number looks. Almost every day in 2013 we've seen a flurry of buyers show up in the last 2 hours of the day so if they are exhausted it might finally mark a change of pace in the short run. If not, we just remain in a very overbought state.
While that inverse head and shoulder target from the mid November reversal to the 1520s remains in place, it is not expected to be reached in a straight shot – hence the expectation that there would be some shake out to get rid of some complacency. Thus far the wrong expectation.
Any securities mentioned on this page are not held by the author in his personal portfolio.