05 January 2009

Short-Term Market Outlook with Three Annotated Charts

Below are three annotated charts offering up my short-term outlook for the broader market. As per usual, click on 'em to make 'em large and legible.

First up, the S&P 500 is in an up-trend achieved on low volume. It's now looking overbought and primed for a possible pullback:

Second, a chart of the number of S&P components trading above their 50-day moving averages. Another sign that a pullback is likely:

Third, a chart of the CBOE put/call ratio. Another indicator showing a too-optimistic market:

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