Weekend Commentary from Fallondpicks.com
Market internals [$NASI, $NAA50 and $BPCOMPQ] are all in neutral territory (with a bullish bias). The $NASI and $NAA50 are closer to overbought levels than the $BPCOMPQ. A substantial reaction may soon be in the offing (October?), but it may not be the one which kills the 2002-2006 rally given the $BPCOMPQ would quickly be pushed back to oversold levels. June/July reaction lows will be important support levels to watch on the next leg down.
Also of interest was volatility. It closed Friday on a 'bullish hammer', below the 200-day MA. More importantly, it found support at May congestion, and has likely set up a bounce to triangle support, current resistance, around 21.50. Rising volatility is normally associated with a fearful market - further evidence for a correction around the corner?
fallond