AI Frenzy Pushes S&P 500's RSI To Most Overbought Level Since November 2021: What Does History Suggest Will Happen Next?
Portfolio Pulse from Piero Cingari
The S&P 500 Index's relative strength index (RSI) reached its most overbought level since November 2021, signaling a potential market correction or reversal. The SPDR S&P 500 ETF Trust (NYSE:SPY) has surged 6% in June.
June 16, 2023 | 4:35 pm
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The SPDR S&P 500 ETF Trust (NYSE:SPY) may face a potential market correction or reversal as the S&P 500's RSI reaches its most overbought level since November 2021.
The S&P 500's RSI reaching its most overbought level since November 2021 indicates that the market may be overextended and poised for a correction or reversal. As SPY closely tracks the S&P 500 Index, it is likely to be impacted by these market conditions. Historical data shows that overbought RSI conditions have led to market drops in the past, suggesting a potential negative impact on SPY in the short term.
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