This market is way overbought. It’s acting like a lot of people believe a new bull market is underway – but it isn’t.
The financials (XLF) are almost 30% above their 50 DMA.
(Chart from BeSpoke Investment Group)
All the major indexes are right around what should be major resistance as well.
(Charts from Michael Kahn, “The Bear Is Hiding Around The Corner” (subscription required), Barron’s, Wednesday April 15)
Have things really changed that much in 5 1/2 weeks? Has the economy miraculously healed itself and we are now on our way to full fledged recovery?
Come on! This is ridiculous. It won’t last.