Buy for Now, but Stay Tuned for Overbought Signs

Dividend Digest 271, April 15, 2015

The S&P 500 has become overbought as measured by the 5 day RSI (arrow). This can be some sort of top, but it can also be a sign of strength. Stay tuned. and there was concern about Q1 earnings reports which get under way in earnest this week. Gold fell back by $6. A stronger dollar again got credit for the drop.

The VIX rose 11%. Large moves like this tend to be in the vicinity of some sort of rebound. We can see this in the chart to the left.Screen Shot 2015-04-16 at 3.02.28 PM

Our intermediate term system is on a buy from Feb. 20, 2015. We are long the SPY from 206.43.

Stephen Todd, Todd Market Forecast, www.toddmarketforecast.com, 909-338-8354, April 10 and 13, 2015

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