XJO 0.88% 7,959.3 s&p/asx 200

Just thinking.. ain't it funny how markets are much more likely...

  1. 9,803 Posts.
    Just thinking.. ain't it funny how markets are much more likely to bounce from an oversold condition than they are to reverse from from an overbought condition.

    And temporary weakness in indicators during a bull run, even divergence, can always be corrected by a rally. The advance-decline divergence seen atm, for example, could be fixed by a rally in small caps as they catch up to the large caps. Bearish divergence in momentum indicators can be fixed by a strong rally. What seems like weakness in indicators can sometimes just be consolidation, or even bullish as the indicators cycle down without much give back in price. Just a thought.
 
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