The S&P500 index was up 0.6% last week and closed in an all-time high at 322.1,
We are at the 320-325 levels we have forecasted for the market all those weeks ago.
The daily RSI is above 90 so we expect another correction in the coming days, which is a good indicator of a healthy market.
Overbought / Oversold Analysis
Here are the momentum and overbought / oversold analysis for this week:
As usual, we are looking for sectors that are picking up on momentum while oversold, although it’s getting harder and harder to find such sectors these days as the market is very bubbly in the short term.
The only sector that is gaining momentum is the materials sector (XLB) still not in overbought territory and could be a potential long position, as we said, it’s hard to find a momentum picking sectors since the whole market had a very big rally lately.
On the short side, we suggest to review the health care equipment (XHE) and the health care services (XHS), both had a very nice run-up and are ready to correct in the short term.
We have a number of specific stock picks in the above sectors described in our website ,
You may find all of AlphaOverBeta trades in the Real Time Trading Updates of our website