Our key indexes closed in positive territory on Monday (3rd consecutive day), confirming the view we expressed during the week-end that the next upleg will probably occur this week.

The summation 21 gave a fresh buy signal on Monday.

Conclusion:

The market seems overextended, but we have to respect our indicators, a buy signal remains a buy signal, and we don't want to dismiss it.

Nevertheless, we have to notice that the last signal (sell signal) was reversed after one day. So, when market enters in this kind of environment (distribution period), this is usually when we are close to top or bottom in the market.

Have a nice day,