June 27, 2017

Major Indices Remain in a Short-term Overbought State

Random Thoughts Three of the top five most short-term overbought ETFs that I follow are major market ETFs. DIA, SPY and IWM (in that order) are currently "very overbought" on a short-term basis. The RSI (2) of SPY and DIA are roughly 96 and above and IWM is not far behind at 92. As I write this the futures are higher and if we open at these levels we will see another test of the recent overhead resistance that has plagued the bulls since last Wednesday's historical surge. As I stated yesterday with DIA and SPY in short-term extreme overbought states coming off huge gaps to the upside and battling with strong overhead resistance the probability for a short-term reprieve is high. However, as we all know, stranger things have … [Read more...]