September 21, 2013

Indicators Flashing Warnings All Investors Should Heed


From Investorplace.com

Indicators Flashing Warnings All Investors Should Heed

Price action and sentiment are positive, but MACD, momentum and RSI are overbought
By Sam Collins, InvestorPlace Chief Technical Analyst  |  Sep 20, 2013, 2:20 am EDT

Stocks paused Thursday following the Fed’s surprising announcement on Wednesday that they would continue to purchase bonds at the current rate for the time being. Following a modestly higher opening, stocks traded sideways and then sagged slightly for the remainder of the session.

The decision not to start cutting back on stimulus came as a surprise to The Street, and high-dividend stocks jumped. Some of those gains were relinquished on Thursday, especially those in the defensive groups like utilities and consumer staples. Seven of the 10 S&P 500 sectors closed lower.

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