Nasdaq 100's Overbought Signal May Indicate Future Gains

Reported about 12 hours ago

The Nasdaq 100 has experienced a significant surge of over 6% in three of the last six weeks, raising concerns about being overbought. Despite this, technical analysis suggests that this overbought condition, as measured by the relative strength index (RSI), may actually set the stage for more substantial long-term gains. Historically, similar patterns have resulted in an average 15% increase over a year, with a strong track record supporting continued upward momentum.

Source: YAHOO

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