The stock market’s been solid and stable during the second half of 2012, as the Dow Jones Industrial Average has climbed higher.
Overbought Oversold Oscillator
The Overbought Oversold Oscillator shows the last real oversold reading the market’s had was during May. Since then its been clear sailing. We’ve been overbought a few times, but in each instance the market’s calmed down before making another leg higher.
This chart looks good, I feel very confident going into the fourth quarter.
DJIA
The chart of the Dow is pretty. Here you can clearly see the market bottomes in ealy June and has been climbing higher since.
Higher highs and higher lows — as shown here — is a bullish sign. We are in calm waters now.
Shareks Take
I think we are in the middle of a multi-year bull market that began in 2009. From here there’s very little negatives I can find. With November through April a historically good time to be invested in stocks, we should be in for good gains the next six months.
