A number of people have asked me recently if I think that equities are overbought. I don't think so...I think equities are undergoing some consolidation that is normal considering the size of the really we saw at the end of last year and my short term view of the market is neutral.
My Smallcap Momentum Model is at 52.40, which is about as neutral of a reading as can be. And on the NYSE, 65% of stocks are trading above the 200 day Moving Averages. In a long-term Bull Market that is a neutral reading as well. This means that assuming there are no surprises, the market will probably continue to consolidate or trade sideways in the near-term.