"Indicators continue to be overbought but can stay there for some time, " says Burke.
As I noted last week, the market was quite overbought, so a correction was likely.
Remember that readings above 80.00 are overbought on a scale of 00.00 t0 100.00.
FORBES: Short The Market With These Six Exchange-Traded Funds
This Friday is month end and it looks like the monthly chart will remain overbought.
FORBES: 10 ETFs With Technical Upgrades Following Black Friday Rally
Stocks are a bit soft Monday as the oscillator hit pretty extreme overbought levels on Friday.
The Relative Strength Index reading has been around 70 lately, considered overbought in the short term.
FORBES: Focus: Platinum Slides On Liquidation As Amplats Agrees To Talks Before Job Cuts
So it goes to show that this asset class is far from overbought and overweight.
FORBES: U.S. Global Investors' Holmes: More Gains Ahead For Gold As Monetary Base Expands
Overbought conditions and apparent reversals in major stock indices suggest the start of a long-overdue correction.
By contrast, analysts are concerned that the U.S. and other markets may be wildly overbought.
Technically, the weekly chart profiles for all major averages show extremely overbought 12x3x3 weekly slow stochastic readings.
Of course, this is just one measure of whether a stock or ETF is overbought or oversold.
With stocks overvalued fundamentally and overbought technically, it appears that 2011 could be a repeat of 2007.
FORBES: Five More Banks Fail, Regional Banks Remain Pressured By Real Estate Portfolios
The fact that stocks are overvalued fundamentally and overbought on their weekly charts are certainly important facts.
But it also has the market short-term overbought and so vulnerable to at least a short-term pullback.
FORBES: Strongly Bullish Winter Seasonality Lifts Stocks Again
The stock is not technically overbought in the short-term, though any week-ending gains could easily change that.
FORBES: With New Kindle Fire HD, Amazon Emphasizes Service Over Style
The McClellan Oscillator has turned up from oversold levels, and at -42, it is well below overbought territory.
Two of the best-known overbought stocks on the list look less positive based on their weekly technical readings.
The monthly chart remains positive but overbought with the close this week above its five-month MMA at 1380.7.
FORBES: 10 ETFs With Technical Upgrades Following Black Friday Rally
The market can always become more overbought, sentiment can always become more bullish, and insiders can continue selling.
Trading in bear market territory since May, WBMD has only rallied to overbought levels twice in that time.
Analysts have been calling for a short-term market pullback to alleviate the overbought condition for several weeks now.
FORBES: Usually Right, The Market Says No Problem For Economy In Sight
With the markets overvalued fundamentally with overbought weekly chart patterns its time to sell strength to risky levels.
Overall, stocks remain overvalued fundamentally and overbought technically, but several sectors or segments of the markets have lagged.
However, after a five-month intermediate-term rally to an overbought condition, it is a time to be alert for changes.
As overseas investors divert funds from overbought Wall Street to Hong Kong, Wharf's stock price has been inching up.
Technically the Dow Industrial Average has an overbought monthly chart, a positive weekly chart and a positive daily chart.
FORBES: Buy And Trade These Five Dow Stocks Reporting Earnings This Week
Just as commodities were oversold in the December break, Newsom said the precious metals seem overbought at current highs.
FORBES: FOCUS: Silver Posts Strong 2012 So Far; Will It Continue?
While bonds are becoming oversold and possibly nearing a buy signal, are stocks overbought and nearing a sell signal?
Today, I profile five Dow Components that are overvalued and overbought and achieved new all time highs last week.
The daily charts remain negative, and the more important weekly charts remain overbought.
应用推荐