Oh, it's not just the two indicators I wrote about in Monday's column, but it's the way individual stocks are acting. First, someone asked me over the weekend whether Adobe had a base because it had crossed a downtrend line. There's a big difference between crossing a steep downtrend line, as Adobe did back in early April, and building a base. When a stock that has collapsed then doubles in less than two months, it looks more like an oversold rally than a base.
Bases take time.
But I wonder how you can look at a one-year chart of Adobe and see anything besides all of that resistance lying overhead, beginning at 50. Oh sure, maybe we can make the case that the resistance is really closer to the mid-50s, but that is resistance. I don't see Adobe getting through that without doing a lot more work. However, we can see how much the sentiment has shifted by reading the news on Adobe and looking at its chart and recent price action. This week, Adobe reported that it's unsure about the second half of this year.