This Market Is Ridiculous

Includes: IYF, IYG, XLF
by: Greg Feirman

This market is way overbought. It’s acting like a lot of people believe a new bull market is underway - but it isn’t.

The financials (NYSEARCA:XLF) are almost 30% above its 50 DMA.

All the major indexes are right around what should be major resistance as well. Michael Kahn has the charts in yesterday’s “Getting Techinical” article: “The Bear Is Hiding Around The Corner”, Barron’s, Wednesday April 15. The S&P is at 865 and the late Jan/early February highs around 875 loom. The Nasdaq at 1668 is just above its highs for the year.

Have things really changed that much in 5 1/2 weeks? Has the economy miraculously healed itself and we are now on our way to full fledged recovery? Come on! This is ridiculous. It won’t last.

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