ARE BULLS RUNNING OUT OF STEAM ?..

What we discussed yesterday seem to be materializing, some traders did pull that trigger today sending signals of a PANIC SELL. First casualty was Fidelity bank, from an early up 5% at (N3.58) bid of 5million units bid dropped  down to N3.24 and rallied back to close at N3.35. Afribank shares made similar trend and rallied back.

This current rally might experience a pullback within 25,000 - 24,800 points. But base support will be 25,000 points. This  isn't the kind of long drawn kind of pullback but rather a quick short term pullback to digest the short term overbought condition in order for the market to continue higher in a healthy manner. I am not predicting a market top here. This recovery market has a lot more to go before it hits the next top. In fact, what I am suggesting here is a possible entry point following the coming short pullback, so please don't interpret this negatively.

From a Technical view, RSI is now above 70 for the NSE ASI index which puts it into nose bleed overbought conditions.

However, internals for the market are still positive.

So, see this as an overbought market where for the short-term it is best to wait for the next pullback or consolidation period before buying - but NOT a market to be fearful of a new bear market starting or to get overly bearish about.