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Last week marked a significant moment in the financial markets, as the S&P 500 exhibited an extraordinary and relatively infrequent technical indicator. For the first time in over a year, the stock market entered a state of extreme technical overbought condition. This is discerned through the Relative Strength Index (RSI), a widely regarded metric used by traders to evaluate market conditions. On this occasion, the RSI of the S&P 500 surged past the 80 mark, a rare occurrence signaling a heightened overbought state.

To contextualize, the RSI is a momentum oscillator that measures the speed and change of price movements, typically oscillating between zero and 100. A reading below 30 suggests an oversold market, while a reading above 70 indicates an overbought market. Since the Thanksgiving period, the RSI of the S&P 500 has consistently hovered above 70. However, its recent leap above 80 takes it beyond mere overbought status to a level of extreme overbought, a situation not seen since the tumultuous period following the COVID-19 market crash.

Historical patterns paint an interesting picture of what could lie ahead. Drawing parallels to the post-COVID rally of 2020, we observed that after the RSI soared above 80 in late August of that year, the market experienced a 10% pullback in September. This was followed by a remarkable 50% rally over the subsequent year-plus period. This pattern suggests a potential repetition in the current market scenario. The immediate forecast could involve a brief pullback in January, setting the stage for a substantial rally throughout the remainder of 2024.

Our analysis, stretching back to 1950, reveals insightful trends about stock market behavior following such overbought conditions. In the month following the first extreme overbought signal in over a year, the market tends to exhibit volatility, with approximately equal chances of rising or falling, averaging out to virtually zero net return. However, the longer-term outlook is significantly more optimistic. In the 12 months following such an event, stocks have historically rallied 85% of the time, and this figure rises to 90% over a 24-month horizon. The average returns for these one- and two-year periods are 16% and 19%, respectively.

In essence, the pattern observed yesterday indicates a probable short-term pullback, followed by a strong upward trajectory over the next 12 to 24 months. This scenario presents a compelling opportunity for investors to capitalize on the anticipated dip in January before the expected robust rally throughout 2024.

The key question now is: which stocks should you invest in during this dip? Fortunately, we have thoroughly researched and prepared strategic recommendations to guide you in making informed investment decisions during this pivotal period. Check this out…


Elon Musk: THIS will be bigger than Tesla

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Hello. I'm James Altucher. I've been called a “genius investor” by my fans… And an “eccentric millionaire” by some others. I think it's because I make big predictions… That tend to come true. Today, I'm revealing a brand-new prediction:

American manufacturing will leave China…

And make a triumphant return to America…

Thanks to AI-powered robots.

The technology is being developed right now. I'm talking about, among others… Elon Musk's Optimus robots. These robots are autonomous workers… Embedded with a smart “AI brain”. Musk is going to use thousands of them in Tesla factories… AI robots will make it cheaper to manufacture goods here in America than China. And they'll create new American jobs in construction, maintenance, transportation, management, and more. Musk believes the potential of these robots is almost limitless… And could soon exceed Tesla's revenues… He's even said his robots have the potential to be used in homes… To make dinner and do housework… Care for the elderly… Or even hinted at them… Being a buddy or “romantic companion” for lonely people. Now that may sound strange… (And perhaps it is.) But I've learned not to bet against Musk's vision. And this is just one of the ways AI will transform our economy and society. In fact, I now predict… Between now and January 9, 2024… Next generation AI technology will open a “wealth window”… That could be the biggest wealth-building opportunity of your lifetime. I now expect AI to be the first $100 TRILLION industry. There could be trillions available to those who get in early… Today, for the first time… I'm showing good Americans exactly what to do… Go here now to see my plan… For investing in AI during this brief “wealth window”.

P.S. If you missed out on crypto, this could be your second chance. The AI “wealth window” is opening now, but you must get in before January 9, 2024. Don't delay. See all the details you need here.

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ELON’S FINAL MOVE

Elon’s new AI venture promises to create 10 TIMES MORE American millionaires than Tesla did.
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FREE ACCESS TO CHAIKIN ANALYTICS

Marc Chaikin has developed a system  over the past 50 years…

A website that shows you which stocks could soon rise by 100% or more, by typing in any of 4,000 tickers.

Today, he’s allowing me to offer you free access to the system here, as part of a major new prediction he’s making.

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A new ground-floor opportunity for 8,788% returns has emerged but you must act by December 31st…
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“The Forever Battery”

Secret Startup Cracks the Battery Code — Wall Street Legend Predicts a 1,500% Surge in Electric Car Sales Over the Next 4 Years…

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3 High-Yield Dividends for Guaranteed Passive Income

Here are the best dividend stocks for smart investors to secure a steady & reliable “second income”. Our top pick is trading for just $2.
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New EV Set to Disrupt Entire Industry

The Wall Street Journal calls it “an American manufacturing triumph.” It promises to revolutionize the driving experience and hand investors MASSIVE profits.
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Forget 99% of Tickers - Just Use This One

Larry Benedict is sharing a crazy over-the-shoulder “demo” (less than 10 seconds). Learn how to make all the money you need – in any market – using a single stock.
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Is Amazon Obligated to Pay You?

Thanks to a U.S. law, you can claim your slice of this jackpot and collect up to $48,000 over the next year.

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#1 Energy Pick

This little-known Silicon Valley company is using AI to do something incredible…
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#1 EV Breakthrough of 2022

Louis Navellier is about to give away the ticker symbol of an overlooked battery company… one set to skyrocket in value as the EV boom gets underway. 
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Anyone can invest like “The People’s Shark” with as little as $100

You no longer have to be rich, famous, or powerful to become an angel investor. Starting now, it’s possible for you to get involved in these life-changing deals.
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Is L.A.S.E.R. The Greatest Tech Breakthrough in History?

A $3.5 trillion megatrend… spearheaded by Elon Musk is bringing what could be the most disruptive, revolutionary tech breakthrough the world has ever seen, with one small company sitting at the center.
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2,467% Return on Israeli Laser Company

Learn the 3 Steps You Need to Protect Your Retirement and One Stock that Could Soar 2,476% in Nine Months.
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One Tweet From Elon Could Blow This Story Wide Open

Last year, anyone who listened to this man about Tesla could’ve made EIGHT TIMES their money. Now he’s revealing how Elon’s NEXT big move will revolutionize ANOTHER massive $23 trillion market.
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$25 to Profit from 20,000 IPOs

Days from now — 20,000 ‘IPOs’ could start flooding the market…
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"Bio-Chip" Sparks Potential 199,900% Surge by 2025

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