Have we gone too far too quick?- Probably, but it's anyones guess as to what happens next. There are sectors that have run hard lately which could pull back, such as the energy and resource sectors. There are other sectors which are still oversold and are starting to represent excellent value propositions, such as the company's exposed to the Housing and construction sector. Any corrections will be relected in the overall market trend, and while some sectors may correct downward, others will still be showing good positive growth. One need only look at the overall downward trend for the XAO as a whole since September last year, and compare that to individual companies and sectors such as the Energy Sector which showed remarkable growth since November despite the overall market only reaching it's low on about the 6'th of March this year.. I think that the critical point will come in the next reporting season starting in July, when company's annual results start to provider a clearer picture about the economy's performance.
