SPX, QQQ Flash Overbought as VIX Rises
$S&P 500(.SPX)$
Overbought McClellan Oscillator +70 following a market bounce signals a short-term consolidation before the bullish continuation resumes.
When the overbought condition is reached in a mature uptrend, it can precede a major pullback.
The current case is a market bounce $Invesco QQQ(QQQ)$
The RSI has crossed 70 for the first time in 6 months. This initial move typically does not mark the top, it usually precedes consolidations before reaching higher highs.
A +7.9% spike in the $Cboe Volatility Index(VIX)$ and indecisive price action reinforce the thesis for a gap fill at 7,051.
$ServiceNow(NOW)$ Consolidation is normal after last week's +16% run. Reclaiming the 20DMA with conviction could reignite momentum ($98.7).
Bullish conditions above $93.4 only, targeting $102 this week. Gap fill and go?
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