Chart of the Day – Monday, June 17, 2024
Patrick Dunuwila
The Chart Report
10 months ago
1 MIN READ
RSI on $QQQ is on track to go above 82 for only the 7th time since inception.
Mixed as a short signal over the next month or so. Terrible (for shorts) after that. pic.twitter.com/MvqGzu3VTg
— Jason Goepfert (@jasongoepfert) June 17, 2024
Today’s Chart of the Day was shared by Jason Goepfert (@jasongoepfert).
- The Nasdaq 100 ($QQQ) has become extremely overbought as it continues to print record highs. The Relative Strength Index (RSI) reached its most overbought reading since 2018 today, closing at 81.5.
- Jason points out that RSI on $QQQ will likely hit 82 for the seventh time since inception. He suggests that it hasn’t paid to fade $QQQ after an extremely overbought reading.
- ‘Extremely Overbought’ might sound bearish, but it’s really not. It just means the underlying bid is unusually strong. That’s often a recipe for higher prices, not lower ones.
The takeaway: The Nasdaq 100 ($QQQ) hasn’t been this overbought since 2018, but that’s not necessarily bad. If anything, this is typical bull market behavior.
The post Chart of the Day – Monday, June 17, 2024 appeared first on The Chart Report.
