By: Scott Redler
Is the market working off its overbought condition or is technical strength fading?
The market went from 1010 to 1098 then pulled in to 1056 (which was the 50% retracement) for “ll the marbles”. The bulls prevailed, and then traded from 1056 S&P to 1120. We stated earlier this week the market is overbought, sell some longs and get short for a trade. We have covered that trade and now are trying to figure out if this pull-in is buyable.
NOW we are getting close to an area that is VERY IMPORTANT. 1078-1082 needs to hold for the technical strength to remain intact. Watch action of leaders for clues.
