FYI: It's not too often that we have the opportunity to invoke the name of a Vanilla Ice album to describe the market, but after the last five weeks of trading, US equities have reached overbought levels "To the Extreme." While the escalating violence in Hong Kong and doubts over whether the US and China can come to even a phase one trade agreement are two reasons being cited for this morning's weakness in equity futures, just as important is the fact that US markets are heading into the week at not only 'Overbought' but 'Extreme Overbought' levels.
As shown in the image below from our Trend Analyzer, eight of the fourteen US index ETFs we track closed out last week at 'Extreme Overbought' levels. As a result, all eight of these indices have 'Poor' timing scores. Mid and small-cap indices may not be as extended as their larger-cap peers, but they too are all overbought.
Regards,
Ted
https://www.bespokepremium.com/interactive/posts/think-big-blog/to-the-extreme
