#82: The US Stock Markets are Overbought

S2N Spotlight

As you can see the Nasdaq is on a 6 day up streak as you can see in the chart below it is not something that happens too often.

The RSI is currently above the 75 mark on the Nasdaq Composite which means it is overbought. However, this has happened quite often over 20 years and returns 1,3 and 6 months down the line are positive. My bearishness is therefore indefensible based on these indicators alone. I am still bearish I just wanted to provide some extra evidence against my thesis. This is where valuation and breadth come into play.

S2N Observations

I have had a crazy day so I am not going to share my usual observations, other than if you look at the tables below you will see GameStop dropped -12% and Cocoa was down -10% providing futures traders lots of volatility to trade.

Performance Review

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