Market Update

 DIA 1 min negative, but so far the correction is through time-lateral, which can relieve an overbought condition-I mistakenly called it oversold in a previous post.

 DIA 5 min.

 QQQ 1 min, also so far correcting though time

 QQQ 5 min

SPY 1 min correcting though time so far.

I was asked by a member three questions.

1)  How could over sold be due to short covering? Do you mean over bought?
2) Why do you not want to see this?
3) Your other charts that showed pos div on the longer time frames you said you were happy to see? Why is that? Are you net long?


1) Here are the answers, yes I meant to say overbought, a little slip, obviously we are not oversold.
2) Holding long positions, I prefer to see an orderly trend and when the market creates excesses, you get excesses in the opposite direction. The longer a market stays overbought, the more severe a correction usually is.
3) I like the long term charts, they fall in line with my thoughts on the market. Thus far they would indicate more upside to go, perhaps substantially, however pullbacks are part of the game.