Bullish Stock Indicator Fuels Debate Over Potential 2024 Market Rally or Bubble
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A technical indicator signaling an "overbought" market since Nov could indicate a bullish 2024 for stocks, per Bank of America. When indicator flashes overbought all year, S&P 500 returns avg 19%.
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The S&P 500 is up over 7% year-to-date in 2024 after the indicator stayed overbought in Dec, Jan, and Feb. It tends to signal volatile markets if it loses overbought status for 3+ months.
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Bank of America's latest survey shows investors are the most bullish on stocks in 2 years, with many piling into tech. Some warn of a potential bubble.
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Veteran investor Jon Wolfenbarger is bearish, expecting earnings deterioration and similarities to the 2000 tech bubble. He says megacap tech stocks mask broader weakness.
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The S&P 500 hovered around 5,086 on Tuesday amid the bull-bear tug-of-war while the overbought indicator remains a potential positive sign.