May 6, 2025

By Nigam Arora

To gain an edge, this is what you need to know today.

Reaction Of Overbought Market

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

• The chart shows the stock market was near the low band of support zone 3.
• The chart shows Arora buy signals near the April lows.
• The chart shows the stock market ran up to the top band of resistance zone 2.
• The chart shows the Arora signal to take partial profits.
• The chart shows that the stock market has pulled back from the top band of resistance zone 2 as of this writing in the premarket.