Despite significant overbought conditions, the market has performed quite remarkably, and instead of taking the gains of late and wiping them out with sudden and swift sell-offs, the selling is instead controlled and quite orderly. Volatility is substantially down and at levels necessary to see continuous gains going forward and the overbought conditions are slowly being reduced. However, the wild-card still remains whether we truly know the extent of the financial turmoil. If there is more bad news yet to priced into the stocks, then we could easily see another major leg down in this market.
Here’s the Nasdaq and S&P charts…
