The Stock Market has Moved into Overbought Territory

Admittedly, we've been conditioned, just like you, by the stop-and-go action of the stock market in the last two years.  As you can see below, it has encouraged buyers to wait on a correction, wait until the "oversold" conditions reoccur.  You can see the current overbought condition of the market in the chart below.

The stock market has had short cycles, and it has been very fickle as to what kind of stocks participated.  On the big blast off last week, it was very natural that the market became overbought rather quickly.  Optimally, at this point, we would like to see our Psychology Composite come down to a P2 or better and the stock market become oversold.
Don Hays

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