Short-Term Consensus Hotline fax or email recommendations, updated 3 to 6 times daily 6. Click here to receive the full commentary free via email. Click here for Testimonials. The strong stock market rally in the wake of the Fed's Tuesday rate cut has been well-received by the market. By that, I mean that the market hasn't shown signs of being seriously overbought even though it has been so strong.
Market breadth is a prime example, with advances dominating declines.
The number of times in the past that the oscillator has been above 400 are very few. However, most of them while perhaps directly preceding a period of sideways movement, or consolidation eventually led to higher market prices. That is, extreme overbought conditions early in a bullish cycle are actually positive indicators. We'll see how this one plays out. The broad market put-call ratios have remained on sell signals.