Market Overhang

Market Overhang is usually an observational theory stating that in a few stocks at peak times, there is the buildup of marketing pressure. This occurs like a combined result of sales along with a strong wish to offer among those who still support the stock but worry that selling it could cause further declines. Depending on the entire liquidity in the actual stock, a market place overhang can last for weeks, several weeks or longer. Market overhang usually relates to trading in one security but can also apply to larger regions of the market, for example an entire market.