S&P 500 Rally Hits 9-Week Stretch, Longest Since 2004, Raising Overbought Warning Despite Bullish Momentum
• S&P 500 on a 9-week rally, longest since 2004, leaving index "overbought"
• Overbought conditions point to potential near-term pause in rally
• But history shows long rallies tend to confirm momentum and continued trend
• Indicators like RSI measure if assets are overbought/oversold, but prices can still rise
• Tactically overbought now, but can use to opportunistically build long positions