Overbought!

I just cannot see what the bulls are so excited about. Maybe it's just hope springing from the gridlock in Washington.


The S&P 500 is now trading 20% higher than its 200-day average. Although there have been rare occasions this deviation has been higher, we note that this is typically an "extreme."
• During the 2002/2007 bull market, we never hit +20%.
• 1986 and 1987 saw 19%/20%, but no higher.
• 1982 saw the deviation briefly above 20%.
• 1975 saw a marginal move above 20%.
• 1943 saw the 20% deviation again prove good resistance.
• 1935 and 1936 though saw the deviation above 20%.
• 1933 saw the S&P 500 59% rich to its 200-day.
• 1929 saw the 20% deviation again prove good resistance.
 • 94% S&P 500 stocks also now above their 200-day average.

http://seekingalpha.com/article/162671-tuesday-outlook-waiting-for-the-fed-to-supply-an-exit-strategy?source=email