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Before the end of the day on Friday I moved my index funds to short from long. Lets see how the market does today. The Dow is overbought, however, some of the other indices are not.

The Dow closed near the highs of the day on Friday and that typically is a reversal signal if the move comes late in an upmove.

The Dow also has had 7 straight up days. I’m looking for consolidation. However, the market will go higher after a consolidation, so bears don’t get excited. In fact, I think short covering will help the market move to higher highs.

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