Market Hits Extremes Before…
On Friday the 2-period RSI of QQQ and IWM reached intra-day readings above 99 which are unsustainable levels and the fast sell-off near the close was the results of the extremes the market had reached. After 8 straight weeks higher closing prices, combined with the market being overbought, a short-term pullback/pause is in the works and it may take a few days before the bull rally resumes. We’ll wait for a pause here and let this play itself out.
Also, this is a good article from last week’s New York Times Dealbook: The Overlooked Secret to Great Performance.