Rallies Continue as Markets Enter 95% Percentile Overbought
It's not a foretelling of a crash, but the S&P, Nasdaq and Russell 2000 are in the 95% (99% for the Russell 2000) of price extension history from their respective 200-day MAs; these scenarios have often been followed by substantial declines and in some cases, bear markets, but a rout is not guaranteed.
Today's action of small gains is beneficial to longs and keeps the squeeze on shorts.
The Nasdaq is still underperforming against the Russell 2000 but today's buying keeps the rally ticking along regardless.
You've now read my opinion, next read Douglas' blog.
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Investments are held in a pension fund on a buy-and-hold strategy..