11/04/2008 Market Recap: Market Overbought

Cobra's Market View Private Messaging System shows:

Not much to say today, let's see how the market reacts to the election result.  Technically speaking the market is extremely overbought and due for a pullback over the short term.

0.0.2 SPY Short-term Trading Signals.  Look at the overbought indicator and see how similar those blue circles are.


1.0.4 S&P 500 SPDRs (SPY 15 min), 1.2.4 Diamonds (DIA 15 min), Bearish Rising Wedge, MACD and RSI show negative divergence.  It should pull back.


2.0.0 Volatility Index (Daily).  VIX is oversold.  If it bounces back, the market should pull back also.


7.0.6 SPX and VIX.  SPX has not formed a higher high yet but VIX has a lower low now, which is a negative divergence.  This chart is for your information only. 


3.2.0 CurrencyShares Japanese Yen Trust (FXY Daily).  Yen is oversold.  Its potential rebound is bearish to the stock market.


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