Market Becoming Over Bought.

Excerpt from a public post from BeSpoke Investment Group yesterday.

"{Above} we provide our six-month trading range charts of the S&P 500 and its ten sectors. For each chart, the blue shading represents the sector's "normal" trading range, which we consider between one standard deviation above and below the 50-day moving average. The red shading and above is considered "overbought" territory (more than one standard deviation above the 50-DMA), while the green shading and below is considered "oversold" territory (>1 standard deviation below the 50-DMA).

After trading into oversold territory for the first time since last August, the S&P 500 has quickly recovered since its recent low on March 16th. While the index has yet to take out its prior highs and reconfirm the bull market, it is already right back at overbought territory as of this morning....."

I'm going to post an update chart of the S&P 500 tomorrow to show where we stand at the end of Q1. My work does not show us as being quite as overbought as Bespoke's analysis but we are getting there, especially in the shortest time frame that I follow. Accordingly and to reflect what has become Lumen Capital Management's actual trading stance recently, I will move our shortest term market rating down to NET MARKET NEUTRAL. This means that on balance where we have initiated trades we have been equal buyers and sellers of securities in accounts. For the most part we've done very little in the past week or so.

Link: 5 of 10 Market Sectors Overbought.

*Long ETFs related to the S&P 500 in client and in certain personal accounts.