Technically speaking

Even the technical analysts are growing cold on the stock-market rally. The text below is from Standard & Poor’s Morning Briefing:

The S&P 500 has run into the underside of a major area of resistance that runs from 1007 up to 1020. We think this zone will represent a ceiling for the index in the near-to intermediate term. Besides nearing key resistance, we think the S&P 500 is overbought from an intermediate-term standpoint from both a price and internal perspective. Also, many market sentiment indicators are showing fairly extreme levels of bullish sentiment toward the market. While we think the S&P 500 will take another stab to the upside, we think this will represent a topping phase that will eventually lead to a pullback toward the 950/960 zone.

I always have to suppress a chuckle when reading through technical analysis and its approximation of the English language, but at least the text above was clear where it matters – “we think the S&P is overbought.”