WHEN OVERBOUGHT IS BULLISH
John Lynch Chief Investment Strategist, LPL Financial | Ryan Detrick, CMT Senior Market Strategist, LPL Financial
The bull market continues to march higher. The S&P 500 Index is near one of the most overbought levels in history and this has many wondering how much longer the rally can continue. The longer-term technical indicators continue to look strong, but sentiment is flashing some warning signs suggesting market volatility could finally be heating up.
MOST OVERBOUGHT IN 22 YEARS
How can we sum up the events of 2017? Although our favorite story might be that the world’s largest snowball fight was canceled because of too much snow, this year will be remembered for being one of the least volatile years in history. In other words, this is another reminder that nearly anything is possible when it comes to markets. Put simply, we are currently in the midst of the longest streak ever without a 3% correction for the S&P 500, and potentially the first year in the history of the S&P 500 to have a total return monthly gain all 12 months. Add it all up and....