S&P 500 Stalls at Resistance as Indicators Suggest Overbought Conditions For Market Correction
• S&P 500 rallied but stalled at resistance level around 4,745, which dates back to Nov 2021 and Jan 2022 • Index traded above upper Bollinger band for 4th day in a row and RSI moved above 80 • Last times RSI went over 80 with index above Bollinger band were in Sep 2020 and 2018, both followed by declines to lower Bollinger band • Unlike 2020, money not cheap now and Fed not doing QE, more like 2018 with rate hikes and balance sheet contraction • Given conditions and lack of fundamentals, market likely to correct from extreme overbought levels