Our overbought signal has been running at an 85% success ratio clip the past 36mos. Due to the recent dislocation of markets, I was hesitant to accept this indication as something to rely upon. Alas, a few days following the most recent signal and it has proven to be invaluable once again.
What does this mean?
The mood of investors is brightened during periods of excessive bullishness to the point that is builds upon itself and causes V shaped rallies. This might not last forever; but has been the case recently and now, which also lends to the idea that this market isn’t done going higher.If you enjoy the content at iBankCoin, please follow us on Twitter