This Is Ridiculous

Technical Analysis

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.

xlf-overbought1

(Chart from BeSpoke Investment Group)

All the major indexes are right around what should be major resistance as well.

sp-resistance

nasdaq-resistance

(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.

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