Market's Bill of Health: Short Term Top Avoided as Bearish Divergences Resolved

From - Advisor Perspectives
January 23, 2013 - 10:25pm

Jan 23, 2013 Chris Puplava  Last week I highlighted a number of short-term bearish divergences that suggested we may approach a small top in the markets. On the flip side, I also showed that there were two bullish chart patterns at work in the S&P 500 that could play to higher highs. With the strong performance of the market since last week, the bullish chart patterns have indeed played out causing the bearish divergences to now be resolved. With that said, while the market's trend and momentum remain strong and firmly in bullish territory, the market is overbought and we will likely get a short term pullback....More...

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