S&P500 Rally Pushes RSI Back into Overbought Territory
The S&P500 breaks out of the range bound price action from earlier this week to register a fresh yearly high (4999).
S&P500 Index Outlook
The recent rally in the S&P500 has pushed the Relative Strength Index (RSI) back above 70, and the overbought reading in oscillator is likely to be accompanied by a further advance in the index like the price action from earlier this year.
A break/close above 5008 (50% Fibonacci extension) may push the S&P500 towards 5090 (61.8% Fibonacci extension), but looming developments in the RSI may show the bullish momentum should if fall below 70.
Failure to hold above the 4950 (161.8% Fibonacci extension) to 4980 (78.6% Fibonacci extension) region may push the S&P500 back to 4926 (38.2% Fibonacci extension), with a breach below the monthly low (4848) opening up the 4793 (61.8% Fibonacci extension) to 4825 (23.6% Fibonacci extension) area.
--- Written by David Song, Strategist
S&P500 Index Outlook
The recent rally in the S&P500 has pushed the Relative Strength Index (RSI) back above 70, and the overbought reading in oscillator is likely to be accompanied by a further advance in the index like the price action from earlier this year.
A break/close above 5008 (50% Fibonacci extension) may push the S&P500 towards 5090 (61.8% Fibonacci extension), but looming developments in the RSI may show the bullish momentum should if fall below 70.
Failure to hold above the 4950 (161.8% Fibonacci extension) to 4980 (78.6% Fibonacci extension) region may push the S&P500 back to 4926 (38.2% Fibonacci extension), with a breach below the monthly low (4848) opening up the 4793 (61.8% Fibonacci extension) to 4825 (23.6% Fibonacci extension) area.
--- Written by David Song, Strategist
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