MCO Update - Overbought but Bullish

The MCO's 10% Index spent the entire week above the +500 level indicating we are in the midst of a strong trending move in the market. While the indicators are overbought any decline is likely to be short lived with the trend drifting higher in a choppy fashion. In addition the upside breakout of the down trends established earlier in these indicators leads me to believe we could expect the general up trend to continue for at least a month or two more.

The McClellan Oscillator and its Components
Click to enlarge