ETF Rewind – Week 2 – XLI Overbought?

The market is looking quite overbought going into January’s options expiry week, in particular the NASDAQ 100 (QQQQ) and Industrial stocks (XLI), which both sport perfect 100 RSI-2s. In fact, a broad swath of sectors are now pushing into this zone, and I suspect some sideways to corrective action will soon be in order even though overbought conditions like this are more apt to persist during bull runs.

Next week’s focus will be the on-going earnings reports featuring a slew of finnies and a housing focused economic calendar.

Meanwhile, enjoy our latest systems post and have a terrific Martin Luther King weekend!