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> Overbought Levels and Lengths
Investors are worried that the market is set to pull back now that we have reached overbought levels (1 standard deviation above the 50-DMA). However, markets can stay overbought for long periods of time just as they stayed oversold for months at a time during the most recent bear. The S&P 500 has now been overbought for ten days in a row. Since the bear market started in October 2007, the only other streak of consecutive overbought days ended at 15 last May.
When we look at streaks of overbought days going back to 1928, however, the current 10-day period is nothing but a blip on the screen. As shown below, there have been thousands of similar or more extreme streaks of overbought days, so just because we're overbought now doesn't mean we can't stay overbought.
http://bespokeinvest.typepad.com/bespoke/2009/05/overbought-levels-and-lengths.html
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This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
저자는 올려지는 글에 의해 파생된 손실에 대해 일체의법적, 금전적 책임을 지지 않으며 '주식' 투자에 따른 모든 위험은투자자 본인이 감수해야 합니다
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