4 Feb 2013

Short term bent back downwards and made a lower low than recent.  Neither overbought nor oversold.

 Medium term continues its trend downwards off of extreme overbought conditions.

 Long term is at all time high overbought conditions.

 It looks like what I said last week about thinking most stocks have already had trend changes is appearing to come true so far.  The buying climaxes are rapidly rising.  This doesn't mean that we will immediately fall apart - it looks like usually this indicator subsides as there is another try at highs, and then we sell off further. However, things don't always happen the same way.

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final or total catastrophe of the currency system involved."
Ludwig von Mises