The bulls have made impressive progress over the past several trading sessions, with many key resistance levels having been overcome and others still dead ahead. Market breadth has turned positive, increasing numbers of chart patterns have turned bullish, and enough pessimism remains to fuel a continuing rally. At the same time, short-term indicators are beginning to flash overbought readings, suggesting that a pull-back or some consolidation may not be far off. At this point in time, based upon what I'm seeing in the charts and observing in market and stock action, any near-term pull-back will likely be considered a buying opportunity.
A market breadth indicator, the McClellan Oscillator is useful for short-term market timing, and at the end of Friday's session was venturing into overbought readings. It is still off the highs of the past couple of years, and could work its way a bit higher before needing to relieve these conditions.
That's it for now.
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