ANOTHER STRETCH

Markets had nice moves on Thursday and Friday and now appear to be over bought in the short term. The SPX is about 5% above the SMA 50 which is the most it has been stretched over this SMA since the all time highs in early October.

RSI (2) levels at 90, VIX about 9% below SMA 10, moving averages on adv/decl lines not as stretched to the plus side as one would surmise in light of the rallies- bottom line- overall indicators say market is stretched and due for a pullback.

Also, SPX under the SMA 200 (1430 level) while the DJIA and the NDX/COMPQ are both a hair above the 200. IWM still way under and the MDY a good amount over and congrats to the MID for being the best performing major average for 2008- almost even on the year.

And for anyone waiting for the bottom in the financials, I believe your wait is over as the XLF is now 24% off the bottom hit 6 weeks ago- and anyone who bought GS at the bottom - (140) it is 43% above the bottom while the IAI is +34% off the BSC bottom.