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Wednesday, July 22, 2009

Market Thought... overbought, but bullish

Things are overbought, and there is no skirting around these conditions. Too many internals (individual stocks) are also too overbought to be outright bullish at these levels.

The SP500 is at its 950 resistance (albeit, the 950's top end resistance), and still very overbought

But the interesting thing that happened, as the market was coming down from its afternoon spike, the oscillators started coming down (ever so slightly). The action that I see may suggest the SP500 may only consolidate to the low 940 level. Although I would rather see it come down to the 930 level.

The Naz is in a similar boat, but a new higher end support is now fairly clear. Top two horizontal lines.

Although I see a short-term pullback, my limit order in GOOG got executed. GOOG is fairly consolidated, and still maintaining its uptrend.

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