The Stock for Today

Hello my investors, traders and readers friends. The market looks overbought. How much will correct?. I do not know ... for now. When will correct? ... soon. The Standard & Poor's 500 has passed the barrier of 1,300 points. Yesterday, the SP-500 closed in 1.314 points, up 0.49%.Now, should challenge the 1.360 points and achieve the highest level since 2008.
However, the market looks overbought and must be corrected before reaching the breakout. The magnitude of the correction will probably depend on three factors: Europe (and debt problems), the U.S.economy (and unemployment problem) and the current earnings season. Any negative news in one of these three subjects could generate the start of a correction in the market.
Technically speaking, the market is overbought... but has continued to rise. The main internal indicators we use show a high probability that the market back up soon. Moreover, the market is showing an extremely low level of volatility. Believe me, this will change at any time. Hardly, the market may behave with low volatility for a long time.Surely we will see very soon increased volatility, which usually occurs with a fall in the market. Finally, the recent rise in the major indexes on Wall Street has been produced in conjunction with a suspected decrease in volumes of shares traded. What we can see, is that the next support level of SP-500 is in the order of 1.275 points.
In any case, our two portfolios (Short Term and Medium Term) have made gains. We are waiting for clearer market signals before taking new positions.