stock market overbought - will the stock market crash soon
"stock market overbought - will the stock market crash soon"
in the news stock market overbought - will the stock market crash soon? What this all about..... See below.
Sentiment Trader have been watching the market, and we have had a very good few months. We are now seeing the market in EXTREME overbought conditions. Lets take a quick look at our NAAD or advance decline charts. Basically as of today, you can see this market is in EXTREME or overbought tones.
Now, don't get us wrong, we are not saying the market cannot go up into the end of year!! What we are saying is the bigger guys on wall st use these charts, and you can tell that they would not be a selling the farm to get in the market right here. That would be dangerous.
What we care about most is chart, and this is warning us that after one of the biggest rallies on wall st, we need to realise things are OVERDONE, and the bread in the oven is over baked. If you are one of those smart investors, who BUYS LOW and SELLS HIGH, this would not be an area to start any FRESH buying!!!! Here is the chart.... . This is quite interesting for a STOCK MARKET SIGNAL with a few days until XMAS 2016.
The Sentiment swung to the extreme optimism side. Usually, that signals a pullback.....As the holidays approach, investors expect trading volumes to drop significantly, which may lead to volatile swings within the market. "The trains to Manhattan have started to thin out as some market participants have already commenced their holiday vacation plans, so we urge caution.
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