Underlying Market Structure Improves
Jun 02, 2021 | 10:35 AM EDT
Despite a dull trading session, some of the charts of the major equity indices managed to close above resistance Tuesday, with one making a new closing high. Market breadth remains positive as well.
Indicators suggest the market is now overbought, which may create a short-term headwind for the market, but this is being somewhat counterbalanced by further improvement in investor psychology. The new bear/bull ratios show another decline in bullish sentiment continues to relieve what had previously been an overly optimistic outlook on the part of investors.
On the Charts
Source: Worden