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Forget What the Bulls Are Saying: Red Flags Are Surfacing

128 views  2013-05-09 02:35   Tagsblank  believe  stocks  really 

Read More : http://www.investmentcontrarians.com/stock-market/forget-what-the-bulls-are-saying-red-flags-are-surfacing/1988/

The Ben Bernanke-driven stock market rally continues in full force and is unabated, but I really question the rate of the advance and believe stocks remain overextended at this juncture.

The S&P 500 made another record high above 1,600 last Friday, but making that move to above the magical level came slowly and cautiously, which makes me feel somewhat uneasy.

The breakout—above the multiyear top near 1,565—is positive, as shown on the chart below, but the move was associated with light volume, which suggests a bearish divergence, based on my technical analysis.

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