3min snip

The Compound and Friends cover image

Relative Strength

The Compound and Friends

NOTE

The Overbought Bullish Market

Down days are being followed by strong days to a degree that has happened only once in 2020 over the last 90 years./nGood news is that the market has broadened out substantially in recent weeks and is no longer just a technology market./nInstitutions are still slow to go all in and negativity is still pervasive./nReasons for negativity: overbought conditions, low volume, and selective participation./nSentiment may get more complacent and/or bullish in mid to late July, which could lead to short-term pullbacks./nIf there are events that coincide with the market declining and it seems like a big thing, that could cause the VIX to spike and people to get skittish./nDrip down is not that negative and great performance is still seen on most sectors.

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