7 Day Winning Streak On Hold « Market Montage

"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.

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