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A key long-term indicator of an overbought market has been flashing since November.
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When it flashes for 12 months, the S&P 500 is positive 100% of the time, Bank of America said.
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Markets have turned more choppy when it does not maintain overbought levels.
Three months into 2024 and the stock market is off to a stellar start.
Record highs have come in bunches, and investors have clamored to participate in the artificial intelligence-driven euphoria that’s powered rallies in names like Nvidia and Microsoft.
A technical indicator that signals conditions in the stock market are “overbought” — a term traders use to describe when stocks are trading above fair value — has been flashing for four months and could be pivotal to whether equities stay hot through year-end, according to…
