The Daily Chartist: Still Room on the Upside

Helene Meisler examines a market she says isn't yet overbought.
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The market is still not yet overbought and therefore continues to have room to move to the upside. And the number of stocks making new highs continues to increase. We must give these indicators a chance to continue their improvement.

The statistics on

Nasdaq

, the outperforming average, look quite similar to those on the

NYSE

. The major difference is that this average has gone on to make a new high, while the number of stocks making new highs has not yet exceeded its peak reading of 252. While that is a negative divergence, we must give those statistics a chance to improve further since that market is not yet overbought.

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.