What can we say, the bullish move continues regardless of the over-bought conditions and now is challenging 3 standard deviations over the 20 week SMA. Notice on the chart below, that prices are approaching that extreme level. Can it get there — absolutely but also notice that it does not stay that exposed for very long.
Weekly Continuation – Bollinger Bands 2 and 3 Standard Deviations above 20 Wk SMA
A few of you contacted me in the last week regarding the run and how far it can go– I have tried to explain that it will go as far as the buyers continue to support it — but as I mentioned the last couple of Daily’s, the market will signal the conclusion. Some others have questioned is this the Q2 high– at this point I don’t see this as a culmination of the early summer run – but rather a rally within the med-term bias.
