Long-term investors should continue to do what they are doing (and avoid churning their accounts and building up commissions).
Tuesday, August 25, 2009
Overbought / Oversold Stock Indicator Shifting to Moderately Short
With the market showing continued strength after last week's decline, our Overbought / Oversold Stock Market indicators are flashing warning signs. By the close of today, based on current prices, they will flip from long to moderately short. Our long-term and short-term indicators remain long. This is just a sign that traders should be cautious at these levels based on the recent market action.