The market is even more overbought than it was last week. A pull pack from here is the more likely scenario. It does not mean it will happen right way on Monday. It still may push up a little more. Not only is the market overbought on the daily chart, it is also overbought on the weekly chart. The other interesting part is the number of stocks above their 50 day moving average is declining.
The last couple weeks of gains have really been driven by a handful of mega caps. The rest of the market seems to be retreating. This can also be seen in the difference between the Capitalized NHNL, which is very bullish and the Normal NHNL, which is neutral.
The rolling 52-week NHNL is also showing a healthy bearish divergence.
Not much to read into this at the moment except that the uptrend is overdone and needs a pull back. There is little reason to believe we are at a market top.
