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The Daily Chartist: Expect a Choppy Market

And given our current near-overbought condition, a rally would be a bit premature at this point.

June 28

There have been many times when the indicators are lined up in such a way that we already know what's been priced into the market. For example, often when the

FOMC

meets, the indicators are already telling us that whatever action the

Fed

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takes has already been discounted. This is not one of those times.

From what I read, I believe there are many who say that a hike of 25 basis points is in the market. It may well be so. But at this time, the indicators are still saying we can expect a sloppy and choppy market. A decent rally comes from an oversold condition. At this point, the oscillator is much closer to an overbought condition than an oversold one. I believe a rally at this point would be a bit premature.

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.