Perilous Crashes

Please click here for a chart of  Nasdaq 100 ETF ().

Note the following:

  • The chart shows that after the rare occurrence of RSI  reaching 100, RSI is still levitating at 97.24. The market is very overbought.
  • We have previously shared with you that the reason is the convergence of various positive factors. November tends to be the best month of the year for the stock market.
  • In an 85 page report, released minutes after the market close, the Fed is warning that as asset prices keep rising, they are prone to perilous crashes.