Markets are now 15 days removed from the most recent pivot low.
Within those 15 days, the S&P has rallied 6.9%.
This tends to be statistically overbought.
Remember, overbought action can “correct” 3 different ways.
1. Price correction – this is where price auctions lower.
2. Time correction – price moves sideways and we see rotation in individual stocks and sectors
3. Momentum correction – price goes higher but with a slower velocity
I would prefer scenario 1 to happen but odds are we’ll see scenario 2.