Are extremely overbought conditions good or bad?

Over the past 3 weeks the market has rallied unabated. The Russell 2000 (small caps) has rallied so much that the 5-day Relative Strength Index (RSI5) has reached over 95 and closed today at 97; that’s serious market strength! See chart below. We went back 20 years in time to see when such extreme readings…

NAZ/NDX update: is a bull flag forming?

This is an excerpt out of this weekend’s premium members’ update. To become a premium member, click here. Click charts to enlarge: “Here at A.I. we don’t only look at the SPX but we follow all major indices. This allows for a holistic view prone to less errors and guessing. Given the major –pun intended-…