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Eyeing a Potential Pullback

Eyeing a Potential Pullback As we head into the upcoming Overbought reading, let s take a look at some indicators that imply we should pull back in the coming week. Mar 17, 2021 | 06:00 AM EDT Nasdaq limped into the close, but it did manage to enjoy two days of green for the first time in March, and for only the second time in a month. It doesn t tell us much, except that the pattern changed. And that the either/or Market remains intact. As we head into the upcoming Overbought reading, let s take a look at some other indicators that imply we should pull back in the coming week. We ll begin with breadth. It has been good for the rally, but it has not been as good as prior periods. By that I mean out of the seven-straight days with positive breadth, only three of them got to quadruple digits. But that s not a big deal, because breadth made a higher high.

Hot s Getting Overbought

In This Market, It s Still One Way, Or the Other

In This Market, It s Still One Way, Or the Other Let s see why this either/or market remains and what s under the hood. Mar 15, 2021 | 06:00 AM EDT The Dow Jones industrial average, that ancient index, has now been up for six straight days. What s more, it has only been down seven trading days since Feb. 1. That s right, in six weeks of trading, the Dow has essentially had about one red day each week. Contrast that with Nasdaq, which a few short months ago was the only game in town, and since March 1 has not been able to string together two consecutive up days. Since the high in mid-February, Nasdaq has only managed back-to-back up days once. What s even more incredible is that Nasdaq, despite not being able to put together two up days in a row, managed to rally 3% on the week last week.

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