Market Signals 080616

60m overbought ~~ with the last two trading days rally, Qs/Nasdaq have retraced 50% RT of the recent pull back since 6/5/2008 and SPX/DOW 23-30% RT.

Qs traded to 49.02 R and Nasdaq 2480 which are 20dma Rs
Qs and Nasdaq performed strong with RIMM upgrade which was followed by other big cap stocks.

Market breadth is fairly good ~> NYSE 1.53 and Nasdaq 1.42, however, this is after oil trading to 139.89 before it retrieved. It is unthinkable that our economy still can sustain without collapsing with this oil price. Many are suffering from high oil price by cutting expenditures while oilers are taking trillions from US.

This scenario is NOT bullish as markets are superficially hyped with large cap stocks and international mega caps.

While Q/Nasdaq stocks performing better with big caps, SPX/DOW stocks are continuing to underperform as we heard that we have the worst housing market sentiment. As noted before, we still have other bubbles to burst, aka derivative and credit bubbles, as well as mega blotted out big cap stocks such as some big cap stocks.

Again, Americans emptied their wealth through 1999-2000 tech bubble-bust, 2003-2005 ARM bubble-bust, and now we are seeing commodity bubbles. The last kind of bubble which is the basic need for all.

Breadth indicators are showing mixed signals on daily and weekly, positive or negative divergences with confirming as price action momentum as noted above.

It is evident that commodity and oil prices are continuing to show hyperinflationary price actions pressuring Americans and many others with "International Hyperinflation". It is like blowing into already blotted out balloons and beating dead horse economy.

In conclusion, while daily price action indicators are appearing to be gaining momentum, weekly price action indicators are weakening. 60m are overbought and I am anticipating a pull back. Caveat, OE week is not my favorite week as is volatility.

Happy trading and Good luck