FYI: Stocks might be overbought, but momentum remains on their side.
Equities have come back strongly this month following January’s lackluster performance. The S&P 500 has advanced 6%, putting it on track for its best month since October 2011.
The S&P 500 now stands 3% above its 50-day moving average, signaling that equities may be due for a pullback or, at least, some consolidation for the market to catch its’ breath. The last two times the S&P 500 sat more than 3% above its 50-day moving average the index fell 5% within days.
Regards,
Ted
http://blogs.wsj.com/moneybeat/2015/02/26/morning-moneybeat-how-stocks-can-rise-despite-overbought-technical-signals/tab/print/
