As of yesterday Rydex Ratio was at a 3 year high ( meaning people are out of the market and in bear funds and cash ) This is normally a push for the market to go higher... Given the current scenario with the economy, I would say the correction is over, there are a lot of money of the sidelines that need to come into the market and higher prices to make the market overbought.
Given the current economic conditions the market is properly valued... About 8% higher we will become mildly overbought and 20% higher extremely overbought...
I do think we go higher from her..
Yeah, rally from a positions of extreme negative sentiment 7 with many anxious buyers waiting for an opportunity to buy
10% from SPX 2450 takes us to about 2700, that's about the highest target for this rally. It could reach there in about 10 trading days.
BUT, there the market has been beaten down, big losses for many, skittish traders, and major underlying issues that have to be resolved.