Is a technical sell off soon?
The recent rally has been very positive providing a share price boost for stocks and an improvement in the value of funds.
The banks stress testing and an increase in the number of companies reporting positive results has combined to give the markets a very good week.
The financials and selected retailers in both the UK and USA have seen a dramatic up turn in their performance.
Banks in particular have been the category winners in the recent weeks and a lot of them have seen 200%+ increase in their share prices.
Barclays is up over 250% since the year lows and since the March 6th Borders Inc a NYSE listed speciality retailer has traded up from .$39 cents to close at $2.45 on 8th of May.
With the Dow ending up 4% for the week it is now close to a technical sell off. The RSI of the major indices is indicating that the top of this rally is close and that we should see the technical correction.
A market that is up 4% in a week needs to have some air let of it.
