The Daily Chartist: Correction Coming

The Chartist believes the market will correct after reaching a short-term overbought reading this week.
Author:
Publish date:

July 12

The week ahead brings us earnings reports from some of the big names in technology, including

Intel

(INTC) - Get Report

. As if watching the flood of corporate earnings was not enough to keep you glued to the screen, the government will supply us with monthly inflation figures, too. All this just as the market reaches a short-term overbought reading.

The internal market statistics did not improve much over the past week. Even upside/downside volume, which had been tracking the market much better than the advance/decline line, faltered. Therefore, I expect the market will correct after reaching this short-term overbought reading this week.

(As you can see, my PC is back up and running again. It's amazing how much of our lives is tied to a box that sits on our desks!)

New Highs and New Lows

Overbought/Oversold Oscillator

Cumulative Advance/Decline Line

Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on TheStreet.com. Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she held no positions in any securities mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback at

KPMHSM@aol.com.