WHILE DANCING WITH THE TREND, PLEASE RESPECT A NEAR-TERM OVERBOUGHT CONDITION
Since the stock market deals in probabilities, not 100% certainty, the odds currently favor a short-term pullback or consolidation due to a near-term overbought condition. In my opinion, the S&P 500’s (SPX/2747.71) overbought condition is a short-term tactical concern only, versus a longer-term secular observation. Aside from this short-term concern, when new highs are recorded by the New York Composite, S&P 500 Equal Weighted Index and Value Line Geometric Index, the path of least resistance on a non-trading basis is supportive of higher equity prices, as highlighted in our recent Global Macro Economic and Technical webinar.
Adding to the near-term overbought condition shown above, the NASDAQ Composite (COMPQ/7157.39) is trading at resistance, defined by the upper end of a parallel trading channel—chart below.
On behalf of the team at Day Hagan Asset Management, thank you for allowing us to be part of your business.
Art Huprich, CMT
Chief Market Technician
Day Hagan Asset Management
—Written 01.08.2018. Chart sources: Stockcharts.com.
Print Copy of article: Day Hagan Tech Talk January 9, 2018 (PDF)
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