I love when you have traders come out on TV and over the damn internets and talk about how the market is overbought. First off, these guys don't have a damn clue about how markets operate. Prices don't know they are overbought or oversold. There is no such thing because prices are not objective. (Although in the eyes of a chartist it appears that way when they talk about things like a $50 price level and $100 level. It's as if these things are the reasons why a company is succeeding outside of the stock market. Remember that the stock market exists because companies are doing business, not the other way around. So how can prices ever matter?) There is a certain sentiment/psychology taking place in the markets and the charts are deaf, dumb and blind. Too bad most newbies get persuaded into thinking that Technical Analysts are these smart men because today the practice has so many terms and people following it, that it sounds more convincing than listening to an old fashioned CFO about his company, or monitoring the news and economy as you hear it. Newbies are being misled by other failures who now teach what they never could successfully do themselves. Just to make a point, think about how many technical analysts were talking jibberish and chart nonsense at these times in history.