Nasdaq’s prolonged overbought status, extending six months, raises concerns. Comparisons between December and April suggest that while December’s overbought condition resulted in an oversold selloff, April’s less pronounced overbought state triggered a more significant market downturn.
The Nasdaq is also six months overbought.
What we see is that in December, that overbought reading led to an oversold selloff. However, the momentum peak in April was less overbought and led to a much larger selloff. pic.twitter.com/Y3jU8Jc7Qk
— Mac10 (@SuburbanDrone) May 7, 2024
The NYSE is six months overbought (lower pane).
This rally is fueled by rate cut expectations despite the fact that the FOMC made it clear one week ago that rate cuts are not expected. pic.twitter.com/NfPKYd1GE4
— Mac10 (@SuburbanDrone) May 7, 2024