Dear Eoin, sorry, back again with additional questions. Isn't the Bloomberg advance/decline chart showing the breath of the US market has increased substantially causing the recent rally? But how to value the chart at this moment? If it would represent a stock chart I would regard it as overextended, expecting a correction. Another reason for the US and European indices to go higher could be the improving performance of the banking sector often mentioned by you as a leading indicator .Your opinion please.

Eoin Treacy's view

Thank you for these relevant questions of general interest to the Collective. I agree a short-term overbought condition is evident on Wall Street as well as a number of other stock market indices. That is the message we get from looking at the sharp rebound from the February low, the number of shares now trading above their respective 200-day MAs and the surge in the Advance-Decline Line.

That would suggest a consolidation of the gain is looking increasingly likely. The fact banks are finding support against the wider market is, as you point out, a positive signal and suggests that any pullback should be limited to a consolidation rather than the significant upset many were forecasting earlier in the year.