Overbought Market Due for Pullback? 5 Risks That Could Interrupt Stock Rally in Early 2024
• U.S. stocks are overbought based on technical indicators like the relative strength index • Sentiment has swung from extremely bearish to extremely bullish in just two months • The VIX volatility index is extremely low, signaling complacency in the market • Progress on inflation could stall when the next CPI report comes out in January • Analysts' optimistic earnings projections for 2024 may be difficult for companies to reach