At five weeks old, the current rally looks long in the tooth. With the S&P 500 up 13.3%, Jeff Saut of Raymond James notes the index is 2 standard deviations above its 50-day moving average, the most overbought reading in over a year. Oil and the U.S. dollar are also overbought.
We are due for a correction, and I think a mild one is about to occur. The target is the support zone at 2,020 to 1,990, with the 200-day moving average at 2,017.64 a bare minimum target.
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