The fact that the stock market…and many/most groups…are getting quite overbought does not mean that the stock market cannot rally a bit further near-term…but there’s no guarantee either. It looks like the S&P 500 wants to test its all-time highs, but it’s upside could be limited after that over the near-term.
However, not everything is overbought. Crude oil and the energy stocks are coming off oversold conditions. In fact, WTI crude is coming off the kind of oversold condition that has been followed by strong bounces in the past. So, if crude oil can see some nice upside follow-through from last week’s mild bounce, it could help the energy stocks become a surprising outperformer in early 2024!
You don't have access to this post on The Maley Report at the moment, but if you upgrade your account you'll be able to see the whole thing, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.
This post is for subscribers on the Before the Open and All-Access tiers only