What Is OverBought?

I have always stated that Sentiment Trader is one of the best sites for this type of information.



I am still trying to find out what exactly the definition of Overbought really is.

Normally I would say stupid day traders, retail investors, even dumber hedge funds, and institutions, but we all know they were blown out of the market last year, so its really the machines that are doing the buying.

Another Interesting chart illustrates my point above about people blown out of the market. There simply is no volume pushing equity prices up. What happens when he get in to work one day, and the market tanks? Who is going to be able to soak up all of the volume?

Surely its not Goldman's Doomsday Trading Program?