Tuesday, March 09, 2010

Technical Picture - Overbought

Despite the weak open, the market was able to notch fresh February highs before succumbing to pressure in the last hour and half. Transports lead with a test of YTD highs. Financials also managed to test resistance. However, the spike in volume we see on the S&P chart was courtesy of sellers. A pause here would be a good thing. IMO, we need to work off the overbought posture before we attempt to break higher.

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