NEW YORK ( TheStreet) -- Stocks began 2013 with a strong rally and as a result have become overvalued fundamentally and overbought technically. We enter February with new monthly value levels, pivots and risky levels that should limit the upside potential for the stock market. With the yield on the 30-year bond trading around 3.20%, stocks have become less undervalued and more overvalued.Some recent economic data have been weaker than expected such as: The Conference Board's reading on Consumer Confidence at 58.6 well below the 90 to 110 neutral readings, Advanced GDP for Q4, with a contraction of 0.1% when a modest expansion was expected, and Initial Jobless Claims back above the recessionary threshold of 350,000 with the four-week moving average still above 350,000 at 352,000.
Overvalued and Overbought Conditions Limit Upside
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